This week we saw the United States government implement hikes to tech tariffs that are already having flow on effects to the greater industry, including some big players from Japan. The tariffs are set to target products built in lower cost countries like China and Mexico that are then sold in the United States. According to Reuters, as a response, Japanese companies Sony and popular drinks maker Suntory (responsible for Boss coffee among others) have started stockpiling inventory in the USA.
The tariffs put in place a minimum 25% tax against products made in Mexico and China, as well as the potential for further tariffs including a proposed 100% tax on chips coming out of prolific silicon makers, Taiwan. These changes have hit tech companies hard with Nvidia reporting a $200 billion valuation loss in a single day. Of course this will all likely come down to the consumer, with retail bosses from Best Buy and Target already predicting price increases to end users.
