Reuters query re. Liberation Day

Trump’s tariffs including 25% on Canada/Mexico, 20% on the EU, 10%+ on China and 10% on the UK could hit US firms hard. Semiconductor giants like Nvidia face cost hikes from imported chips; Intel may gain but isn’t immune. China’s retaliation on rare materials could worsen shortages. Automakers like GM and Ford might see car cost jumps, risking sales if prices rise or exports drop due to retaliation. PC makers (Dell, HP) could face 10-25% cost increases, adding $200-$500/unit, pushing prices up or margins down. AI server firms (Nvidia, Amazon) may see delays and millions in extra costs from pricier chips and steel. Retailers like Walmart and construction could also suffer. Short-term: higher costs, chaos. Long-term: maybe more US manufacturing, but labor and infrastructure lag. Firms with domestic roots (Tesla, Intel) fare better; most feel the squeeze. Consumers face pricier goods by late 2025 unless companies absorb costs—which is rare.

Any decisive pivot toward protectionism will pose significant risks to critical sectors, with semiconductors and AI servers being prime examples. In the short-term, by inflating import costs and disrupting global supply chains, these measures are likely to amplify production pressures on US. semiconductor and computing firms, which are not currently up to the intense domestic demand. The semiconductor sector will face substantial challenges under the new tariff regime, given the significant portion of key components imported in 2024, similarly, the retail computing sector is particularly vulnerable, with increased production costs likely to be transferred to consumers, potentially dampening demand in an already competitive global market.