The article discusses the anticipated rise in server purchasing costs as a result of US President Donald Trump's trade policies, particularly the introduction of a base tariff of 10% on all imports. Major tech hardware producers in regions like China and Taiwan are notably affected. Experts, including AMD and HPE executives, forecast short-term impacts on supply chains and revenues. Companies are strategizing to mitigate these effects through pricing adjustments and supply chain measures. The article emphasizes the growing uncertainty within the tech sector due to these trade measures.
"I do think that there could be some short-term impacts. I think it's too early to say what the longer-term impacts are. I think we have to look at how things play out over the next number of months."
"Recent tariff announcements have created uncertainty for our industry, primarily affecting our server business. We are working on plans to mitigate these impacts through supply chain measures and pricing actions."
"HPE has already warned that it expects its revenue for Q2 2025 to take a hit because of expectations that Trump's trade policies will affect supply chains."
"Dell said it too would likely have to raise prices in response to tariffs during its most recent earnings call, highlighting the widespread effects of this policy on tech hardware."
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