A top financial analyst is warning of a potential catastrophe for the US tech sector thanks to President Trump’s tariffs. Dan Ives of Wedbush Securities paints a grim picture, claiming the situation could be as bad as the early days of the COVID-19 pandemic.
Armageddon for Tech?
Ives says Trump’s tariffs, especially the hefty ones on Chinese imports (up to 54%), are a huge problem for tech companies. Many rely on China for parts and manufacturing, and these new costs will significantly impact their bottom line. He bluntly calls the situation “economic armageddon” if the tariffs remain in place.
The Price Hike and Consumer Impact
Ives predicts that tech companies will respond by raising prices, leading to a significant drop in demand. He estimates a 15% to 20% decrease in demand due to the increased costs. Ultimately, he says, American consumers will be the ones who foot the bill for these higher prices, whether it’s on iPhones or other electronics. It’s a simple equation: higher costs for companies mean higher prices for consumers.
Investor Anxiety
The analyst highlights the intense anxiety among investors, comparing the current situation to the market panic seen at the start of the COVID-19 pandemic in March 2020. Companies heavily reliant on China, from Apple to Nvidia, are facing intense pressure. This suggests a widespread concern about the long-term effects of these tariffs on the tech industry.
