The world was thrown into a storm following US president Trump’s decision to impose tariffs on just about everything – and almost everywhere. Regardless of how you stand with the decision, things have changed significantly now, for better or worse for companies such as Apple.
In particular, Trump’s motive was to push for manufacturing components directly on US soil, which seems to have forced major tech giants to approve of the same, with partners such as Nvidia announcing the creation of their supercomputers on US soil – a first.
Trump’s tariff war could affect Nvidia and Apple negatively
Considering that most components (and raw materials required for said components) are manufactured outside of the US, Trump’s decision to jump into a trade war with the rest of the world might backfire spectacularly.
While the decision to focus on strengthening the local production of silicon, devices and a general technological advancement is honestly quite commendable, the way it is being pushed forward is most certainly not deserving of praise.
The phrase ‘Rome was not built in a day’ rings true here, and such random, unexpected and unregulated tariffs on the rest of the world will only serve to alienate America further from the rest of the world – in addition to damaging it in the long run.
The construction of these facilities requires a fair bit of time, and is not something that can be achieved in a few years, let alone overnight.
Going back to Apple and Nvidia (both of which are American companies) for now. These companies have a distinct global presence, and quite an overwhelming one at that. Apple products are a lot more popular in the US, and having to pay tariffs will only serve to inflate the prices of their already expensive products by quite a ridiculous margin.
The new iPhone, for example, could cost upwards of triple its current base price – a difficult pill to swallow for many.
As far as Nvidia goes, the company has recently spoken out about its commitment to building AI facilities in the US. However, as far as consumer products go, this changes nothing. If anything, prices for Nvidia cards will continue to sharply increase down the line.
Regardless, it is best to stay put and wait until the trade war ends, whenever that happens.
