As you know, D. Trump won the US presidential elections this year. Whether we like the former new American president or not, the fact remains that his policies will have consequences on the world of tech. In its program, it provides for the implementation of additional taxation on imported products originating in particular from China, Mexico and Taiwan. But “this choice will have consequences”.
Big companies are hoarding inventory!
Concretely, Trump's plan is to apply an additional tax on products coming from countries deemed anti-competitive. The objective is to encourage the relocation of production to the United States by taxing imported products. However, who says tax, says price increases and the first estimates are chilling since the amount of the bill could explode for high tech products. According to the CTA (Corporate Transparency Act) :
- THE laptops and tablets could increase by 46%
- Game consoles would see their bill rise by 40%
- THE smartphones would show a price increase of 26%
A hard blow for the American people who would see their bills increase significantly. However, still according to the CTA, these measures would not be sufficient to encourage a relocation of production to the United States, no. What it risks doing is encouraging exporting companies to move their factories to countries not targeted by these taxes while killing consumption.
In the meantime, this plan is giving major tech players a cold sweat. We think here of Microsoft, Dell or HP who ask their supplier to increase their production. The goal is to accumulate as much stock as possible before these taxes are implemented. In addition, these companies have made known their intention to reduce their dependence on China while encouraging their suppliers to open new production sites outside the territories affected by these taxes!
