American technology companies are distressed by China's tariff

Dina Ghazari was only working for a year when she sent commercial policies to President Donald Trump, her first position to a tail.

It was the year 2019, and the California -based SUSETE company has agreed to provide many retailers in the United States with its high -end sound and video accessories that are largely manufactured in China.

Then Trump imposed a sweeping tariff on China, and Dina found herself paying an additional cost of 25 % on each cable and its import component – even from scratch previously.

I was forced to absorb the costs and for a while I thought it would go to a bust.

“I literally thought that I would start and end a company in less than a year,” she says. “I spent all this time, money and effort, and that I have something like this blind who was a shock.”

The company started, but like many other American companies that you find now in a remarkable similar position.

Since his return to his post in January, Mr. Trump has raised the tariffs on all goods imported from China by 20 %, and put taxes by 25 % on Canadian and Mexican products, only to delay some of them until April.

The president says he wants to force these countries to do more to stop illegal drugs and immigrants to America, return more manufacturing to the United States, and address what he deems unfair commercial imbalances.

But duties are much wider than the last time, when they were gradually disposed of and many products were given exemptions.

Goods such as smartphones, desktop computers, and customs tariffs for the first time are incurred, while taxes rose on others.

“The American importers must pay these taxes, not the exporters,” said Ed Brezito, Vice President of International Trade at the Consumer Technology Association (CTA), a commercial body in North America, which represents more than 1,200 technical companies.

“American companies and consumers who will suffer.”

Companies like MS Ghazarn's are particularly exposed. China is still the first supplier of electronic products of the United States, with a total of 146 billion dollars (112 billion pounds) in 2023, According to official data.

Meanwhile, 87 % of US video game console imports came from that year, 78 % of smartphones, 79 % of laptops, tablets, and two -thirds of the screens, He says CTA.

While many American companies such as Austere have diversified their supply chains away from China since the first state of Mr. Trump, countries like Thailand, Taiwan and Vietnam still do not provide the same capabilities and experience.

At the same time, the US President is now targeting Mexico – another major electronics supplier. While local manufacturing in the United States has increased, this is partly due to the definitions, it is still limited by increasing the most striking costs and regulations.

“Yes, Apple is now making some iPhone devices in India and (Taiwanese chip maker) TSMC diversified to Arizona,” says Mary Le Legm, an older colleague at the Peterson Institute in Washington, DC.

“But China is still a huge part of the supply chain. Relations with new suppliers take time to develop, it is expensive to develop.”

Research indicates that companies transfer a large percentage of the costs of definitions by offering prices. Earlier this month, Corie Barry, the Electronics Best Buy, said that the “vast majority” of the new definitions “will be transferred to the consumer” because the sellers in the industry have such small margins.

In February, Taiwanese Acer said that its laptop price is likely to rise by 10 % based on the duties of 10 % in place in China at the time, while the United States Group HP warned its profits due to the definitions.

Ms. Ghazari says that she may have to raise their prices this year, but concerns that may lead to counterproductive results. “There is a price point that the customer is satisfied with the value of the goods provided.

“The moment I turn above that I start losing customers. High inflation has pressured the Americans.”

During the first period of Mr. Trump, companies such as Apple have succeeded in obtaining exemptions for products, and we may see yet points.

The insiders also suggested that Mr. Trump sees the tariffs of definitions as negotiating tactics and can reduce them if he won concessions, as he did when China agreed to purchase more American goods in a deal reached in 2020.

Fears of economic slowdown in the United States It can make him change the path.

At the present time, the tensions seem likely to escalate. China, Mexico and Canada pledged revenge on any American duties imposed on them, and this week, Mr. Trump threatened to double the definitions of Canadian and aluminum steel only to wander at the last minute.

He plans to impose a “mutual tariff” on the rest of the world soon, and threatened the customs tariff by up to 60 % on Chinese goods during the campaign trail.

There are risks that may lead to an increase in the price of technical commodities all over the world if China is forced to transfer manufacturing to countries where employment costs are higher. Moreover, the two countries may respond with definitions to imported American technology.

Mrs. Ghazari says she is worried, but she is at least preparing this time. Like many other American business owners, she requested an additional stock before Mr. Trump took office and stored in its warehouse from the East Coast.

She hopes to get the company next year so that you can “Axis” again.

“This may mean finding a more cost -effective way to produce the product or do something completely different. It is frustrated to focus on surviving instead of developing my work.”