Impact of US Tariffs on Global IT and Consumer Tech Markets

In this episode of Hashtag Trending, host Jim Love discusses the potential repercussions of new US tariffs on global IT spending and consumer tech prices. Research from IDC predicts a significant reduction in IT expenditure and possible project delays due to the tariffs announced by the Trump administration. The episode also explores how these tariffs could increase prices for popular consumer electronics, including iPhones and Android devices, and disrupt pre-orders for products like Nintendo's Switch Two. Additionally, Hyundai Motor Group's move to integrate tens of thousands of robots into their manufacturing processes is highlighted, raising questions about the future of jobs in automated factories. The episode concludes with a call for empathy and rational discourse amidst these challenging times.

00:00 Introduction and Headlines
00:23 Impact of US Tariffs on Global IT Spending
02:36 Consumer Tech Price Hikes
05:15 Hyundai's Robotics Revolution
06:23 The Future of Jobs and Automation
07:00 Final Thoughts and Advice

Episode Transcript

(00:03):
. IDC warns US tariffs could cut globalIT spending in half Trump's tariffs
could double Consumer tech prices inthe US and Hyundai Motor Group is to
purchase tens of thousands of robotsto integrate into their manufacturing.
Welcome to Hashtag Trending.
I'm your host, Jim Love.
Let's get into it.

(00:23):
The research from IDC says that new UStariffs could slash global it spending
by as much as 50% in the next six months.
The warning follows the US government'sannouncement of fresh tariffs, which
are expected to raise prices, delayprojects, and disrupt tech supply chains.

(00:44):
In a statement IDC said that it'supdating its forecasts and preparing
for a downside scenario that includespossible retaliation from other countries.
Our March 31st forecast of 10%growth for global IT spending will
be reduced significantly in April.
Based on the tariff announcementsof April 2nd, the group said.

(01:07):
And IDC further said that theimpact could be fast and widespread,
especially for hardware and IT services.
Companies may hold off on purchases,delay upgrades, or even cut budgets.
Tech stocks have already reactedwith Apple, Amazon, Meta, and
Nvidia, all falling more than fiveto 6% after the announcements.

(01:29):
If trade tensions escalate furtherand trigger a global recession,
IDC warns, the results couldbe the worst hit to IT markets.
Since the 2008 financial crisis,businesses are advised to prepare for
cost increases and project delays.
Diversifying suppliers and buildingflexibility into it budgets

(01:49):
might help soften the blow.
On April 2nd, US President Trumpannounced the 10% universal tariff
on all imports with specifictariffs targeting certain countries.
These specific tariffs included a 34%tariff on Chinese goods with those
from Vietnam subject to a 46% tariff.

(02:11):
These measures are expected to disruptsupply chains and increase production
costs for many technology companies,but will they have the desired effect
and move production back to the us?
Most analysts agree.
Given the complexity of the supplychain and the time it would take to
find the factories and get the skilledworkers, this will not happen at

(02:31):
any time in the conceivable future.
And analysts predict substantialprice increases for popular
consumer electronics.
For instance, the price of an iPhonecould rise anywhere from approximately
$1,200 US to over $2,300 US dueto tariffs on Chinese imports.
And while Apple has shifted someproduction to India, that country still

(02:55):
has a 26% tariff, plus a substantialamount of the components of an iPhone
are from China and a network of othercountries subject to punitive tariffs.
Predictions for Android phones areless than for iPhones, but still
expected to rise several hundreddollars in their US pricing.

(03:17):
and for gaming, a recent one beingthe Nintendo Switch two, which I think
is made in Vietnam, which is why Imentioned the Vietnamese tariff earlier.
That's initially priced at 4 49 us, andthat might see price adjustments to offset
increased production and tariff costs.
So in response to these tariffs,companies are reassessing their

(03:38):
manufacturing and sales strategies.
Although production is part of intricatesupply chain that's planned years in
advance and not easily reconstructed.
Nintendo's not only.
Talking about changing the pricing,but they've had to delay Pre-orders
for the Switch Two company stated thatpre-orders for Nintendo Switch in the US
will not start until April 9th, 2025 inorder to assess the potential impact of

(04:02):
tariffs and evolving market conditions.
While US consumers face potentialprice increases product delays,
ironically, some of the countriesthat Trump has also targeted such as
Canada and the European Union willbe less affected by these tariffs.
as a result, consumers in these regionsmay not only enjoy current pricing, but

(04:22):
may for once get preferential availabilityfor these products, given that their
tariff structures are pretty stable.
All in all tariffs havesparked frustration among US
consumers, particularly gamers,anticipating new releases.
One Nintendo fan expressed theirdissatisfaction online stating, this

(04:43):
is the worst president in US history.
The Trump administration betterfind a way to save TikTok.
Or there goes the youth vote.
And even if tariffs can get companiesto build factories in the US, how
many human jobs will be in thosefactories when they're built?

(05:03):
We did a story a few days ago that saidthat Honda is ready to reduce its auto
manufacturing staff by 30% using existingsingle purpose robot technology and AI.
Now Hyundai Motor Group plansto purchase tens of thousands of
robots from its subsidiary BostonDynamics to enhance automation

(05:26):
across its automotive factories.
This large scale deployment aims tointegrate advanced robotics into Hyundai's
manufacturing processes, potentiallyincreasing efficiency and productivity.
So in addition to acquiring robots,Hyundai intends to support Boston
Dynamics growth by integrating itsmanufacturing capabilities with

(05:48):
its robotics firms operations.
This collaboration could lead toadvancements in robot technologies and
their applications within industrialsettings, particularly manufacturing.
Boston Dynamics known for developingdynamic highly mobile robots like
Spot and Atlas became part of HyundaiMotor Group in December, 2020.

(06:10):
Since the acquisition, Hyundai hasbeen actively incorporating robotic
solutions into its operations witha real push towards the ultimate in
automation of automotive manufacturing.
Okay.
Don't accuse me of being political.
I wanna ask this really nicely.
Here's the question.
What if we've crashed the globaleconomy to bring back jobs to factories

(06:33):
in the US that will no longer existbecause of automation and robotics?
And I'm not raising this as acriticism, but a question, and
I'd love to hear your opinions.
No politics, please.
Whatever you think is right politically,I'm not out to change your mind,
but I am interested in your opinionson how we can cope with decisions

(06:56):
that are largely being made for us.
And finally.
I realize these are emotionaltimes for everybody, politically,
economically, whatever.
But if I could add one piece of advicethat I'm trying to learn, to take
myself, reach out to those you love.
Let them know if you get frustratedby people you don't agree with or you

(07:19):
think are even stupid, that's okay.
Take a breath and then if you mustargue, try to do it rationally.
But most of all, every dayfind one person, give them a
smile or an act of kindness.
And if you see somebody who'sreally, really being stressed out

(07:40):
by this, maybe just sit and listen.
Ultimately, our future might betied to technology and economics,
but most of us can't control thedecisions that relate to those.
What we can control is ourhumanity and how we make that work.

(08:02):
an iconic Canadian comedian, red Green,used to say, we're all in this together.
And on that note, and I mean this.
Have a terrific Tuesday.