"Brzytwa has led CTA's research helping tech firms prepare for Trump's trade war, but during our talk, he confirmed that "the reality has been a lot more difficult and far worse, because of not just the height of the tariffs, but the variability, the tariffs on, tariffs off." Currently, every tech company is in a "slightly different position," depending on their specific supply chains, he explained."
"However, until semiconductor tariffs are announced, "it's impossible" for any tech company to make the kind of long-term plans that could help keep consumer prices low as Trump's negotiations with foreign partners and investigations into various products drag on, Brzytwa said. Ahead of the busy holiday shopping season, Brzytwa suggested that many companies may be prepared to maintain prices, based on front-loading of inventory by firms in anticipation of more complicated tariff regimes coming."
Tariff regimes have been higher and more variable, including tariffs being applied and removed, creating operational and planning difficulties for technology companies. Each company occupies a slightly different position depending on its specific supply chain configuration. Uncertainty over potential semiconductor tariffs prevents companies from making long-term plans that would keep consumer prices low. Some firms have front-loaded inventory to maintain stable prices ahead of the holiday shopping season. Certain sectors, such as video games, already signal tariff-related price increases. Other firms are delaying price changes until inventories deplete, creating uncertainty about future consumer pricing once stock draws down.
Read at Ars Technica
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