The Impact of Donald Trump’s Proposed Import Taxes on Big Tech Companies and the Competition between Big Tech and Consumers: The Aspen Policy Academy Analysis
On Wednesday, the chief executives of the leading Big Tech companies congratulated the President-elect. While Tim Cook of Apple and Andy Jassy of Amazon have sparred with Donald Trump before, they were very supportive of him as he was about to get a fresh four years as an influential politician.
Trump has shown disdain for Big Tech companies, and he’s been vocal about pursuing policies that increase the cost of doing business for Big Tech and subject them to more unfavorable regulations. Business leaders and venture capitalists expressed worry that an unpredictable administration would undermine the stability of their businesses.
And now, with Elon Musk as his biggest supporter, “this might be a moment in which there’s a picking of favorites amongst the big tech players,” says Betsy Cooper, director of the Aspen Policy Academy.
The impact of Trump’s proposed import tariffs could have a big impact on both tech companies and consumer spending. There was a proposal of a 10 percent universal tariff and a 60 percent import tax on imports from China and up to 100 percent on goods from Mexico.
According to Bernstein, Apple might be less vulnerable than the initial reading would suggest because the company has the ability to absorb higher tariffs. Apple has also been diversifying its supply chain by producing products in different regions, like Vietnam.
From Taiwan to Technology, China Ponders What’s to Come under Trump 2.0: a discussion with M.S. Pompeo and N.C. Shen
Some believe that Mike Pompeo, Trump’s former Secretary of State, is under consideration for a job in the new administration. Pompeo has explicitly called for the U.S. to give Taiwan formal diplomatic recognition – a step that would almost certainly trigger a crisis across the Taiwan Strait.
Shen says Trump will likely have to reconcile with others in the Republican Party who have strong feelings about the U.S. offering more explicit and robust backing of Taiwan.
He didn’t know what he thought, said the international relations scholar. “He wants to bargain, to use his unpredictability to coerce, to deter the mainland.”
On the campaign trail, Trump questioned why the U.S. should help Taiwan defend itself. He said that Xi would not dare move against the island because he respects Trump and knows he is crazy. President Biden said four times that the U.S. would help in the event of a Chinese attack.
Taiwan, the self-governed democracy that Beijing claims as part of China and wants to annex, will be the thorniest issue in bilateral relations.
“And of course, Beijing has mapped out all the congressional districts. They know exactly what industries to target, so if they need to target specific members of congress, they will do that.
Source: From Taiwan to technology, China ponders what’s to come under Trump 2.0
Trade War between China and the United States in the First Three Years of the Great Wall, and Implications for Furniture and Home Improvement Made in China
He said they would feel much more comfortable using a wider array of punitive retaliatory tools, like currency devaluations, punishment of U.S. companies or allies, or steps to exacerbate U.S. inflation.
In its first trade war with the United States, Beijing did play a relatively careful game, but this time they’re communicating through a number of channels.
Wang Zichen, author of the Pekingnologist newsletter on Substack and a research fellow at the Center for China and Globalization, believes that Beijing is in a defensive position.
It may be hard for policymakers in Beijing to not make trade a priority. It is the most liveliest part of an otherwise slow economy, and if tariffs increase it will cause a big decrease in exports.
“Whether I export through China, with the tariffs added to the price for consumers, or through Thailand, where higher costs would result in a higher price, the cost will ultimately be borne by U.S. customers,” he said, adding: “For ordinary business owners like us, worrying about [the U.S. president] doesn’t help.”
Cheng stated at his factory in the southern city of Foshan that a 60 percenttariff would push them to invest in factories in Southeast Asia.
Cheng just shrugged. Some of his production was moved to Thailand beyond the reach of tariffs. He says many others in this business in China took similar steps.
Cheng, 46, owns a company in China that makes light fixtures for export, mostly to America. The main factory that he runs is making an order for more than 2,000 illuminated bathroom mirrors.
