US’ President Trump has announced that it will be going ahead with its plan to implement another tariff of 10% on US$300 billion (~RM1.25 trillion) worth of Chinese goods being brought into the country. The new tariffs come just after the Trump administration’s first round of tariffs on its rival superpower went into effect back in July.
The new tariff – while significantly less than what was initially expected – will clearly affect many companies, both in the US and China. Specifically, many tech brands and manufacturer are sure to feel the pinch of the new tariff. So much so that several notebook makers have begun stockpiling inventory and ready products in anticipation of the upcoming tariff.
Our representatives have just returned from China where they had constructive talks having to do with a future Trade Deal. We thought we had a deal with China three months ago, but sadly, China decided to re-negotiate the deal prior to signing. More recently, China agreed to…
— Donald J. Trump (@realDonaldTrump) August 1, 2019
To be fair, Trump didn’t specifically say if the remaining US$300 billion includes electronic products and goods. At this point, and considering the erratic nature of the US leader, it really wouldn’t surprise anybody even it did.
It should come as no surprise that many US tech giants have voiced out their dissatisfaction against Trump’s tariffs from the start. Companies including Dell, HP, and Microsoft argue that these new tariffs against China would not only affect their revenue flow, but also their consumers. Simply because the tariffs have forced them to increase the sale price of their electronic devices, which include laptops, tablets, and smartphones.
Even Sony has, in one form or another, warned that the tariffs could effectively force the Japanese console maker into raising the price of its current PlayStation 4 consoles. As well as contemplate selling its yet unreleased PS5 console at a higher than average price point at launch.