Big Tech Remains Silent on Trump’s Tariffs, Automakers Not So Much
Trump’s 10% Tariff on Chinese Goods in Effect for a Week
President Donald Trump’s 10% tariff on goods imported from China has been in effect for nearly a week. Ahead of the tariff going into effect, I wrote that "Big Tech has been silent on Trump’s tariffs" — almost no one in the industry had a public reaction or said how they would respond. A week later, that hasn’t really changed.
Tech Companies Unfazed, For Now
Myself and my colleagues have contacted a wide range of tech companies multiple times since the tariffs on China (and the now-paused tariffs on Canada and Mexico) were announced at the beginning of the month. Here’s what we’ve heard back – or haven’t heard:
Just about every Big Tech company makes and ships products from China, so the tariff means higher costs to bring those products into the country. Those higher costs are often passed onto consumers, so if the tariff stays in effect, it seems likely that the companies will raise prices on their products or otherwise see their margins decline.
Why Companies May be Hesitant to Comment
There are a handful of reasons why companies may be hesitant to comment. It might take time for the companies to feel the effects of the tariff and know how it might impact their businesses. The Trump administration is chaotic, so companies may be waiting to see if the policy changes or gets put on pause, as it already has for Canada and Mexico. The administration is also vindictive, so the companies may not want to draw the ire of the president by blaming the tariffs for hurting their business.
Automakers More Vocal
Automakers, on the other hand, have been more vocal.
Tesla Remains Silent
Tesla hasn’t replied to a request for comment.
Tariff-Related Turmoil
The tariffs have already led to some turmoil for shipments and deliveries. Trump briefly removed the de minimis exemption, which allowed packages valued at less than $800 to enter the US duty free. That led the USPS to briefly stop accepting parcels from China and shoppers seeing additional fees on shipments from other carriers. But on Friday, the Trump administration temporarily paused the removal of the exemption until the process could be made more orderly.
More Tariffs on the Way
Trump said this weekend that he plans to also announce 25% tariffs on steel and aluminum on Monday, according to the Associated Press.
Conclusion
It’s unclear how long Big Tech companies will remain silent, but for now, it seems that they are choosing to stay under the radar. The tariffs will likely have a significant impact on their businesses, but it’s possible that they are waiting to see how the situation plays out before making any public statements.
Frequently Asked Questions
Q: How will the tariffs affect Big Tech companies?
A: The tariffs will likely increase the cost of goods imported from China, which will be passed onto consumers, resulting in higher prices or reduced margins for the companies.
Q: Why are Big Tech companies remaining silent on the tariffs?
A: Companies may be waiting to see how the situation plays out, or they may be trying to avoid drawing the ire of the president by blaming the tariffs for hurting their business.
Q: How will the tariffs affect consumers?
A: Consumers may see higher prices for goods imported from China, which could lead to increased costs of living or reduced purchasing power.
