The tariffs imposed by the Trump administration are causing panic among laptop and electronics makers. Companies are worried that these new trade policies will disrupt international supply chains and increase production costs. Experts warn that these developments will have a serious impact on consumer electronics prices. Fearing the tariffs, many technology companies are taking steps such as revising their business strategies or temporarily suspending sales.
Razer, Framework halt sales
On Tuesday, leading gaming hardware maker Razer halted sales of its new Blade 16 laptop line on its website. The configuration page for the product was unavailable, with only a "Notify Me" button available. Similarly, Framework has also temporarily halted sales of some systems in the United States. The measures are part of the precautionary measures companies are taking to deal with the uncertainty caused by the tariffs.
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Nintendo Switch orders are delayed
In addition to laptops, the gaming industry is also feeling the impact of the tariffs. Nintendo has postponed pre-order dates for its Switch from April 9, a move that appears to have been made in anticipation of the tariffs. The delay could delay consumers' chances of getting their hands on the new gaming console, suggesting prices could rise after the tariffs are imposed.
Big companies are speeding up shipments
According to a Nikkei report, major tech companies such as Apple, Dell, Microsoft, and Lenovo have sped up shipments of their electronics products into the United States by air before the tariffs take effect. The move is aimed at avoiding additional costs. One supplier said, "We've had orders from clients to manufacture as many products as possible and ship them by air."
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Trump announces 90-day break
Trump recently announced a 90-day break on tariffs imposed on countries other than China. While the decision provides temporary relief, companies are still wary of the future of the tariffs. While the pause has given them some time to adjust production and supply strategies, the long-term impact on consumer electronics prices remains uncertain.
Impact of 32% tariff on Taiwan
A 32% tariff was imposed on Taiwan on Wednesday, causing deep concern for laptop manufacturers. Taiwan Semiconductor Manufacturing Company (TSMC) is the world's largest semiconductor producer, producing 60% of all semiconductors and more than 90% of advanced chips. If the tariff goes into effect, it could also push up prices for laptops, gaming consoles, phones and tablets.
Stock market losses
TSMC's stock has lost 17% in the past six months, falling another 11% since Trump announced the details of the tariffs on April 2. Companies like Apple, Dell, and Lenovo also suffered losses, but their stocks rebounded somewhat after the 90-day break announcement. Surprisingly, Microsoft, while still holding steady on the list, suffered some losses after the tariff announcements.
Impact on consumers
According to the Consumer Technology Association (CTA), the tariffs could increase the prices of laptops and tablets by 46%, game consoles by 40%, and phones by 26%. These price increases will burden consumers, especially in the case of imported electronics. Manufacturers can take steps such as passing these costs on to consumers or pausing sales, which could also affect availability in the market.
Future uncertainty
Despite the 90-day break, concerns continue to linger in the economy about the long-term effects of the tariffs. The future of products like the Nintendo Switch 2 is also uncertain. While it is hoped that tariffs will not make consumer electronics more expensive, there is no other option but to wait and see how this situation plays out. Consumers should hope for the best but be prepared for the worst.