TechTarget and Informa Techs Digital Business Combine.TechTarget and InformaTechTarget and Informa Techs Digital Business Combine.Together, we power an unparalleled network of 220+ online properties covering 10,000+ granular topics, serving an audience of 50+ million professionals with original, objective content from trusted sources. We help you gain critical insights and make more informed decisions across your business priorities.Tech World Braces for Trump Tariff ImpactTech World Braces for Trump Tariff ImpactAs promised, the Trump administration on Tuesday will unleash new tariffs on trading partners Canada, Mexico, and China. Experts say the move could have a profound impact on supply chains.Shane Snider, Senior Writer, InformationWeekFebruary 3, 20253 Min ReadGK Images via Alamy StockPresident Donald Trump is set to enforce major tariffs on trade partners Tuesday and signaled tariffs for the EU and more -- a move that sent stocks crashing on Monday over uncertainty and broad trade war will mean for consumers and businesses.Canada and Mexico will pay 25% duties on exports to the US, and China will face a 10% levy. Canada and Mexico have announced plans to retaliate, with the former promising its own tariff of 25% on $155 billion of US-imports. Tariffs, taxes paid by importers of foreign good, will likely be offset by increased prices impacting everything imported -- from fruits and vegetables to semiconductors, computer hardware, and more.On Monday, the Trump administration announced the tariffs on Mexico would be delayed by one month.A January report from the Consumer Technology Association said tariffs on technology produces could slice US consumer purchasing power by up to $143 billion. The report also said sales of laptops and tablets could decline up to 68%. Smartphone buying could decline by 37%.According to the Office of the United States Trade Representative, China (with $536.3 billion in goods), Mexico ($454 billion) and Canada ($436.6 billion) were the among the top origin countries for US imports in 2022. Electronics and machinery were among the top imports at $916 billion. China and Mexico are among the top suppliers for US-bound electronics. In 2022, the US spent $108 billion on computers for personal and professional use.Related:Retaliation from our trading partners raises costs, disrupts supply chains, and hurts the competitive of US Industries, CTA Vice President of Trade Ed Brzytwa said in a statement.Many economists -- on both the right and left side of the political spectrum -- warn that even a temporary tariff policy will have lasting impacts on the economy.Trumps tariffs will create an immediate economic shock, especially for North American trade, which has not faced barriers like this in decades, Erica York, vice president of federal tax policy for non-profit think tank Tax Foundation, tells InformationWeek in an email interview. Even if the tariffs are not left in place permanently, they will have a lasting negative effect on the US economy by heightening policy uncertainty. If left in place permanently, they will shrink US economic output, harm productivity, and reduce American incomes.York says Tax Foundations research suggest that US taxpayers after-tax incomes will drop by 1.1% in 2025. (Media Bias/ Fact Check gives Tax Foundation a high credibility score with a right-center political bias rating).Related:What Will Tariffs, New Policies Mean for IT?Gartner analyst Michael OGrady says software and IT services are somewhat insulated from tariff pressures, citing findings from the research firms 2025 Global Tech Forecast. From a tech viewpoint, it is helpful to realize that three-quarters of enterprise and government tech spend in the US comes from software and IT services, computer, and communication equipment make up about 13% of US tech spend although tariffs will impact the price of imported goods, most of the software and IT services spend would not come from China.However, IT firms will contend with likely price increases for hardware, including computers, networking equipment, and semiconductors.We are on edge, says Mike Turicchi, vice president of marketing and strategic relations for Virginia-based IT services provider NCS Technologies. He says major vendors have already signaled substantial price increases for hardware. For us, its been a wait-and-see game. Theres been a lot of big talk and also a loft of shifting resulting in confusion bordering on chaos.But there may be opportunities born out of new policies as well, Turicchi says.Related:New agencies like the External Revenue Service [which Donald Trump recently floated as an alternative to the Internal Revenue Service] and DOGE [the Department of Government Efficiency headed up by billionaire Elon Musk] will likely create new demand for our products and services, Turicchi says.Read more about:RegulationAbout the AuthorShane SniderSenior Writer, InformationWeekShane Snider is a veteran journalist with more than 20 years of industry experience. He started his career as a general assignment reporter and has covered government, business, education, technology and much more. He was a reporter for the Triangle Business Journal, Raleigh News and Observer and most recently a tech reporter for CRN. He was also a top wedding photographer for many years, traveling across the country and around the world. He lives in Raleigh with his wife and two children.See more from Shane SniderNever Miss a Beat: Get a snapshot of the issues affecting the IT industry straight to your inbox.SIGN-UPYou May Also LikeWebinarsMore WebinarsReportsMore Reports