Tech Faces 5–10% Revenue Hit from Trump Tariffs, Says Wedbush
1min read A fresh wave of tariff threats from former President Donald Trump has rocked the global technology sector and sent financial analysts scrambling to reassess the damage. In a post on Truth Social, Trump responded to China’s newly announced 34% retaliatory tariffs with a stark ultimatum: unless China withdraws the increase by April 8, the U.S. will impose additional 50% tariffs on Chinese imports, effective April 9. He also announced a complete termination of trade talks with Beijing, signaling an escalation that could fracture global supply chains and disrupt tech industry operations for years.
Ask Aime: What impact will the escalating U.S.-China trade tensions have on global supply chains and technology industry operations?
The announcement followed a dire warning from Wedush Senior Research Analyst Dan Ives. In a blistering research note titled “For Tech Investors, Tariff Policy Creates Mass Uncertainty/Pain”, Ives described the policy as a potential long-term blow to the U.S. tech industry.
“Investors today are coming to the scary realization this economic Armageddon Trump tariff policy is really going to be implemented this week,” wrote Ives. “It makes the tech investing landscape the most difficult I have seen in 25 years covering tech stocks on the Street.”
Wedbush warned that the sudden and extreme tariff escalation will effectively "rip up a global supply chain overnight", without viable alternatives in place. “Making semi fabs in West Virginia or Ohio this week? Building hard drive disks in Florida or New Jersey next month?” the note asked rhetorically, highlighting the lack of existing U.S. infrastructure to absorb the shift. “It takes years to build a manufacturing facility in the U.S.,” Wedbush emphasized, calling the effort an “Everest-like uphill climb.”
The financial implications could be severe. Wedbush estimates a 5%–10% top-line hit across the tech sector for 2025, with further downside risk if the tariffs persist. Particularly vulnerable are semiconductor and hardware companies highly dependent on Chinese components. In contrast, software and cybersecurity firms—like microsoft, oracle, palo alto networks, and Zscaler—may serve as relative safe havens.
Apple and Nvidia, despite the headwinds, remain Wedbush’s top tech picks due to their “installed base, technology leadership, and long-term growth opportunities,” especially Nvidia’s dominance in AI. Still, the firm anticipates most companies will withhold financial guidance during upcoming Q1 earnings calls due to “too much uncertainty.”
The mood from Wedbush is clear: buckle up. “Today will be a scary day for investors (and us),” the report concludes, comparing the moment to past crises like the dot-com bust and the 2008 financial collapse. For now, investors are being urged to toss out short-term models and prepare for a "new normal" in 2026.
