Prime Business AfricaUS tech giants are navigating a complex web of President Trump’s global trade war, employing a dual strategy to minimize the impact of tariffs on their businesses. Companies like Apple and Nvidia are reconfiguring their supply chains and diversifying product sourcing while attempting to curry favor with the Trump administration.
Apple and Nvidia’s Strategic Moves
Apple has reportedly flown planeloads of iPhones to the US to avoid tariffs, delaying potential price increases. The company is also encouraging non-Chinese manufacturing operations to produce more devices. Meanwhile, Nvidia has started producing AI chips at TSMC’s Arizona plant and plans to manufacture “AI supercomputers” in Texas, with a commitment to spend $500 billion on domestic AI infrastructure.
Join our WhatsApp ChannelThe Game of Trump Management
Tech giants are playing a delicate game of appeasement, making public announcements of massive investments and crediting Trump for facilitating deals. This strategy involves announcing large investments, rolling out existing projects, and giving Trump credit.
Companies like Microsoft and OpenAI have pledged hundreds of billions of dollars in investments, often using terms like “up to” and “planned” to hedge their bets.
In the same vein, firms bundle ongoing projects with new spending plans to boost their investment tallies, just as some others publicly acknowledge Trump’s role in facilitating deals or avoid contradicting him when he takes credit.
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But this implies that businesses can adjust their plans as needed, often after receiving favorable treatment.
Tariffs’ Uneven Impact
Tariffs disproportionately affect hardware companies like Apple and Nvidia, which rely on physical goods shipped globally. Software and services companies like Microsoft, Google, and Meta are less impacted, but a broader economic slowdown or recession would affect all firms.
Uncertainty Ahead
Industry observers will monitor companies’ actual spending and investment commitments, as past promises have not always materialized. Trump’s tariffs have led to Price increases, supply chain disruptions, and investment reevaluations.
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Companies like Acer have announced price hikes due to tariffs, just as firms are reevaluating their global supply chains to mitigate tariff impacts. Businesses are also reassessing their investments in light of changing trade policies.
Over all, the future of tech giants’ operations in the US remains uncertain, with Trump’s tariffs and trade policies continuing to evolve.
