Ursula von der Leyen, the European Union President, has suggested potential retaliatory tariffs on US digital products. Existing tariffs are already impacting global supply chains, forcing tech companies to rethink sourcing strategies. The rising costs of datacentre equipment could significantly affect IT buyers and providers, including those investing heavily in AI infrastructure. Forrester's Lee Sustar emphasizes that the costs of building and operating datacentres will increase, pressuring cloud providers to pass costs to customers and reconsider large-scale investments amid uncertainty regarding demand for cloud services.
European Union President Ursula von der Leyen indicated that the EU might impose retaliatory tariffs on US digital products, impacting IT and digital strategies for leaders.
Executives in the tech industry are rapidly adapting their sourcing strategies due to escalating tariffs from China and the US, affecting global supply chains.
Forrester analyst Lee Sustar warns that tariffs will raise costs for datacentre equipment, complicating ambitious projects like Microsoft's $80bn AI datacentre expansion.
Cloud service demand may decline in the short term, as economic uncertainty encourages providers to reconsider major investments and raise prices for customers.
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