President Donald Trump warned us to brace for his Liberation Day tariffs, and as he took to the stage with a massive board, he upended the stock market, ignited a global trade war, and threw out decades of foreign policy.
Looking like the host of some sort of twisted game show, Trump's tailored tariffs took particular aim at China and the European Union as part of his bid to usher in America's 'Gilded Age'.
Saying that the US has been "looted, pillaged, raped and plundered by nations near and far, both friend and foe alike,” Donald Trump has imposed a baseline tariff of 10% on all imported goods. This comes as the likes of China have been slapped with 54% customized tariffs.
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We previously saw Trump warn about tariffs on imports for foreign vehicles and parts, while the POTUS said retaliation could lead to further raises. Still, the EU and China have already promised their own countermeasures, alongside South Korea declaring an 'all-out' response.
As various tech experts told Wired how the knock-on effect could strike the tech industry like never before.
We've already seen Meta and Nvidia stocks drop by around 5%, while Apple and Amazon dipped by 6%.
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Considering Apple and Amazon are two of the biggest companies in the world, and the former makes around half of its revenue from selling iPhones that are manufactured in China and India, it's not hard to see how these tariffs could soon take a toll.
Trump wants to bring back manufacturing in America, but as so many of our modern devices are typically made in regions like China, the worry is that the cost of these tariffs will soon be passed onto the consumer.
Those at the top are keeping a close eye on things, and despite Trump thinking he's got America's interests in his sights, Goldman Sachs just raised the probability of a US recession by this time next year from 20% to 35%.
Trade expert Tibor Besedes mused: "There’s this idea that consumers are willing to pay higher prices for American goods. There’s no evidence of that ever taking place."
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He went on to say that many Americans voted for Trump because they were unhappy with inflation under the Biden administration, suggesting they won't be happy with Trump's tariffs if the cost of goods continues to go up - we've all seen the rage about the price of eggs.
Despite Trump currently putting an exception on semiconductors to help the US-based Nvidia with its imported parts from Taiwan, political scientist Ian Bremmer has foreshadowed that online retailers like Amazon will be hit hard: "Online retailers will feel the pain, and so will consumer device brands."
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Trump has also closed the de minimis exemption loophole that let consumers import goods from China and Hong Kong for nothing as long they were valued under $800. Alongside Shein and Temu, this is sure to strike eBay and Etsy.
Nick Vyas, founding director of the Randall R. Kendrick Global Supply Chain Institute at USC’s Marshall School of Business, said that while the customer will eventually end up paying, there is a plan for how this could work in America’s favor.
Vyas suggested a multi-year approach where the USA should build a manufacturing infrastructure for semiconductors and defense tech, introduce apprentice programs and boost the labor force for semi-automated industries like automobiles, all while continuing to outsource smaller goods and electronics to other companies.
Even as Trump cheers his tariffs, it's being described as a 'watershed' moment for world trade.