President Donald Trump’s so-called Liberation Day went into effect on August 7, 2025. The sweeping import taxes effect every U.S. trading partner, with tariffs ranging from 15 percent on trading partners like the Japan and South Korea, ranging up to 50 percent for countries like Brazil as a form of geopolitical punishment.
The effects are especially stark in the tech sector. Apple is moving its manufacturing operations out of China and into places like India and Vietnam and announcing major investments in American manufacturing to avoid additional tariffs on tech. Earlier this year, gaming giants like Sony, Microsoft and Nintendo warned of severe disruptions to their entire industry while Nvidia raised the price of its GPUs by as much as 15 percent to offset the impact of the tariffs, and Trump is reportedly considering a 100 percent levy on all semiconductor imports, which could hit chipmakers even harder.
What Is a Tariff?
A tariff is a tax placed on imported goods and services. Calculated by percent, these fees are often used by governments to raise the cost of foreign products in order to discourage their consumption, and in turn, boost demand for domestic goods. Tariffs also aim to reduce reliance on overseas manufacturing in the long-run.
The President’s aggressive global tariff strategy hit a major legal setback, as the U.S. Court of International Trade ruled in May that the vast majority of these import taxes — imposed unilaterally on dozens of countries without congressional approval — exceeded his legal authority. While the ruling doesn’t touch tariffs imposed under separate laws (like those on steel, aluminum and cars), it strikes at the heart of the president’s broader plan to pressure nations into more favorable trade deals with the United States. The U.S. Court of Appeals granted the Trump administration’s request for a stay, putting the lower court order on hold during the legal fight.
Meanwhile, the financial markets have experienced major whiplash since “Liberation Day,” as many of these tariffs have seen a series of last-minute hikes, reversals and exemptions since they were first announced in April — not to mention the reciprocal tariffs the U.S. imposed on 70 countries, many of which were temporarily paused in April. Businesses are scrambling to adjust, shifting their supply chains, rewriting contracts and bracing customers for higher costs.
What Is a Reciprocal Tariff?
A reciprocal tariff is when one country matches another’s tariffs in retaliation to trade restrictions. This calculation is based on the rate needed to offset trade imbalances between two countries, and is meant to create a more equitable trading environment. While reciprocal tariffs can be a powerful negotiation tool, these direct callouts also pose the risk of escalating into a trade war. That means higher prices, strained relations and disrupted global supply chains.
Whether Trump’s approach ultimately succeeds in reshaping global trade in America’s favor or leads to even deeper economic fragmentation remains to be seen. But with diplomatic ties faltering, legal challenges mounting and companies racing to play catch-up, what we do know is this: The rules of global trade have changed.
A Timeline of Trump’s Tariffs
Trump’s tariff-focused trade policy was a defining feature of his first term. Here’s a look at how key events have unfolded since his second inauguration on January 20, 2025, starting with the most recent developments.
Trump’s tariff-focused trade policy was a defining feature of his first term. Here’s a look at how key events have unfolded since his second inauguration on January 20, 2025, starting with the most recent developments.
August 11: President Donald Trump signed an executive order extending the administration’s trade truce with China for another 90 days. The new tariff deadline is November 10, meaning importers can continue buying Chinese goods at the current 30 percent tariff rate, instead of the triple-digit rate set to snap into place without the reprieve. China has also agreed to maintain its current 10 percent tariff on U.S. imports during the 90-day truce.
August 7: After four months of back-and-forth, President Trump’s tariffs have gone into effect worldwide across more than 60 countries and the European Union. Rates start from 15 percent for trading partners including the EU, South Korea and Japan and range up to 50 percent. The Trump administration has also threatened a 100 percent tariff on semiconductors, with major exceptions carved out for companies that pledge to invest in American manufacturing and job creation.
July 31: As the August 1 deadline approached, the Trump administration granted Mexico a 90-day extension to try and reach a trade deal. Later that same day, Trump also signed an executive order that included changes to the reciprocal tariff rate on more than 60 countries along with additional penalties for transshipments, set to take effect August 7. Technology products including electronics, semiconductors and other AI-related hardware are among the many items affected by the sweeping import taxes.
June 7: After placing a 90-day pause on reciprocal tariffs with several countries, Trump signed an executive order extending the deadline to August 1, at which time more than a dozen of those countries — including Japan, South Korea, Thailand and Malaysia — will face steep new tariffs, according to letters the White House reportedly sent to them. The letters stated that the U.S. will “perhaps” consider adjusting the tariff levels “depending on our relationship with your Country,” but warn that if these countries impose retaliatory tariffs on American goods, the U.S. will add that figure on top of the 25 percent they already charge.
May 29: U.S. District Judge Rudolph Contreras blocked the Trump administration from collecting tariffs from a pair of Illinois toy importers — the second federal court to trike down the president’s tariffs in two days. The Trump administration has two weeks to appeal the decision. Later in the day, a federal appeals court temporarily halted the May 28 order from the U.S. Court of International Trade, effectively reinstating the Trump administration’s tariffs.
May 28: The U.S. Court of International Trade ruled to block Trump from imposing some of his steepest tariffs against China and other countries, claiming that federal law did not grant him “unbounded authority” to tax imports from nearly every country in the world.
May 12: After days of negotiations, the United States and Chinese governments decide to temporarily reduce their respective tariffs for 90 days. Under the agreement, the U.S. will cut tariffs on Chinese imports from 145 percent to 30 percent, while China will lower tariffs on American goods from 125 percent to 10 percent. The two nations have until August 10 to reach a lasting resolution.
April 29: Punchbowl News reports e-commerce giant Amazon will begin listing tariff prices on its products to highlight the increases consumers can expect to shoulder. White House Press Secretary Karoline Leavitt called the action “hostile and political” in the morning’s press briefing. Amazon founder Jeff Bezos reportedly spoke to Trump over the phone and the company quickly issued a statement denying the Punchbowl reporting.
April 16: California becomes the first state to file a lawsuit against Trump’s “reckless” tariffs, challenging the administration’s use of emergency powers.
April 14: Legal advocacy group Liberty Justice Center filed a lawsuit on behalf of five U.S.-based businesses that import goods from countries targeted by the tariffs.
April 11: China announces a third round of retaliatory tariffs on U.S. imports, from 84 percent to 125 percent.
Later that day, Trump announces temporary exemptions for products like smartphones, laptops and televisions, as well as electronic components like semiconductors, chips, solar cells and memory cards. While no specific companies were named, the exemption clearly benefited tech manufacturers like Nvidia and Apple — an especially notable outcome given that it came just days after a reported phone call to the White House from Apple CEO Tim Cook. Administration officials deny any favoritism, but Trump has since told reporters that he “helped” Cook and “that whole business.”
April 9: Trump announces 90-day pause on all reciprocal tariffs — except those imposed on China, which increased from 104 percent to 125 percent.
April 8: China responds, vowing to "fight to the end" and calling the U.S. measures “groundless and a typical unilateral bullying practice.”
April 7: Trump threatens to impose an additional 50 percent tariff on Chinese imports unless China reverses its retaliatory measures.
April 5: Trump’s baseline 10 percent tariff on all imports takes effect.
April 4: Stocks continue to plunge.
April 3: China retaliates, answering U.S. rates with 34 percent tariffs on all American imports, starting April 10. Stocks drop to record lows. Simultaneously, the U.S. begins enforcing a 25 percent tariff on all auto imports. Canada responds, matching 25 percent tariffs on non-USMCA-compliant American vehicles.
April 2: Trump introduces “Liberation Day” reciprocal tariffs for more than 180 countries — on top of a 10 percent baseline tariff across the board.
March 26: Trump announces 25 percent tariff on foreign cars and auto parts, effective April 3.
March 25: The U.S. announces secondary tariffs of 25 percent on countries purchasing Venezuelan oil.
March 12: U.S. tariffs on steel and aluminum tariffs take effect. The European Union re-instates “rebalancing measures” originally introduced during Trump’s first term, featuring 10 to 50 percent tariffs on various goods, from food and clothing to boats and motorcycles.
March 6: The U.S. announced temporary exemptions for USMCA-compliant imports from Canada and Mexico. In response, Canada pauses its second wave of tariffs.
March 4: Tariffs on Chinese goods rise from 10 percent to 20 percent, while Mexico tariffs become active. The 25 percent tariffs placed on all Canadian imports also go into effect, including a 10 percent tariff on energy imports. China retaliates with 15 percent tariffs placed on U.S. farm exports. Canada moves forward with a $155 billion tariff package on American goods to roll out over the following 21 days.
February 10: Trump announces new 25 percent tariffs on imported steel and aluminum.
February 5: The U.S. amends its tariff policy, exempting certain low-value Chinese imports.
February 4: The 10 percent tariff on all Chinese imports takes effect; China retaliates with 10 to 15 percent tariffs on U.S. imports.
February 3: Canada and Mexico negotiate temporary agreements with the U.S., pausing tariffs for one month.
February 1: U.S. imposes 25 percent tariffs on goods from Canada and Mexico, and 10 percent on Chinese imports. Canada retaliates with a $155 billion tariff package, taxing 25 percent on everything from orange juice, beer, coffee, appliances and non-USMCA vehicles.
January 20: On Inauguration Day, President Trump issues the ‘America First Trade Policy’ memo, outlining plans to reduce trade deficits, enforce stricter import controls and prioritize U.S. manufacturing and resource independence.
What Tech Products Are Impacted by Trump’s Tariffs?
President Trump’s tariff policies directly impact most hardware-related tech products, which are overwhelmingly “made in China.” As a result, price hikes on laptops, tablets, smartphones and gaming consoles are almost certain, as well as the electronic components used to build these products, like semiconductors and printed circuit boards.
Outside of China, “the world’s factory,” Taiwan leads in advanced semiconductor fabrication, while South Korea is known for producing memory chips and displays. Vietnam and India are growing hubs for smartphone assembly, electronics components and manufacturing, with Mexico taking on the brunt of consumer electronics and automotive electronics production for North America.
How Will Tariffs Impact the Gaming Industry?
Trump’s proposed tariffs on countries like Japan, Vietnam and Cambodia are threatening to crater the gaming industry, hitting key manufacturing hubs with duties as high as 49 percent.
Nintendo, which had shifted production of the Switch 2 to Vietnam and Cambodia to avoid tariffs on China during Trump’s first term, has now been blindsided by the new rates. In response, the company delayed U.S. pre-orders for the Switch 2, citing the uncertainty, even as the global launch remains on track for June. Gaming stocks tumbled — Nintendo dropped by 7 percent, Sony more than 10 percent — reflecting fears about rising costs and disrupted supply chains. Analysts warn that console and accessory prices could climb even further, with companies possibly recouping losses through pricier games or bundles.
For example, the Nintendo Switch 2, set to launch on June 5, carries a $449.99 price tag — Nintendo’s most expensive console debut to date. With Mario Kart World bundled in, that jumps to $499.99; on its own, the game would go for roughly $80, an unusually high price — all of which have yet to include any looming tariff-driven inflation.
While top gaming companies likely anticipated some tariff pressure, the scale and speed of implementation is catching much of the industry off guard. Reshoring manufacturing to the U.S. is unrealistic, as it would take several years and billions of dollars to open a factory from scratch. But in the meantime, these companies have to figure out how to modify their supply chains, as components are typically sourced from multiple countries and often cross borders several times throughout the production process, layering tariffs with each pass through. As a result, the tariffs could force a widespread rethink in how — and where — gaming hardware is made, with consumers ultimately paying bloated prices.
How Top Hardware Manufacturers Are Pivoting
Here’s a rundown of what we know so far about top names in tech hit hardest by the ever-evolving tariff changes enacted by the Trump administration.
Apple
Apple is making moves to diversify its supply chain. Apple relies heavily on Chinese imports for its core products — including iPhones, MacBooks and other hardware — leaving it highly exposed to shifts in trade policy. In February 2025, Apple announced a $500 billion investment plan in the U.S. over the next four years, which includes hiring 20,000 employees and building a new server factory in Texas to strengthen domestic manufacturing. Additionally, the company is reportedly expanding its production footprint in countries like India and Vietnam, a move aimed at reducing its dependence on Chinese manufacturing and mitigating future supply chain risks. The company is taking steps to reduce its dependence on Chinese manufacturing, reportedly expanding its production footprint in countries like Vietnam and India. In the past month alone, Apple airlifted 600 tons of iPhones — an estimated 1.5 individual units — from India to the U.S. on chartered flights “to beat the tariff.”
Most recently, Apple announced it would invest another $100 billion in its American Manufacturing Program (AMP) which could help the company skirt the 100 percent tariff on semiconductor imports threatened by the Trump administration in August.
Nvidia
Despite severe stock declines and $1 trillion in losses since January 2025, Nvidia CEO Jensen Huang told CNBC that “the impact of tariffs won’t be meaningful” to their company, noting the role of their GPUs in building the future of AI. With that being said, the company is investing in domestic manufacturing — reportedly in the hundreds of billions over the next four years — including a partnership with TSMC to build a chip production facility in Arizona. In anticipation of tariffs, Nvidia, along with other competitors like AMD, rushed to ship next-generation graphic cards to U.S. warehouses, stockpiling inventory to avoid price hikes. The company is also exploring assembly operations in locations like Mexico where some products remain protected from increased tariffs under the USMCA.
Samsung
Although Samsung’s CEO confirmed that “nothing has been decided yet,” the global brand seems to be taking a multi-pronged approach to manage tariff-related impacts. For its television business, Samsung benefits from producing most North American units in Mexico, where they may avoid tariffs altogether under the USMCA, giving the company an upper hand over its competitors that rely heavily on Chinese factories. However, its Galaxy smartphones — nearly half of which are produced in Vietnam — faces a steep 46 percent price jump, prompting the company to weigh shifting more output to other facilities, like Brazil (which has just a 10 percent tariff), India, South Korea and Indonesia.
Additionally, Samsung is considering moving some appliance manufacturing from Mexico to its U.S. plant in South Carolina, where it primarily builds washing machines. With roughly 10 manufacturing hubs worldwide, Samsung’s global supply chain gives the company room to adapt quickly amid the quickly shifting global trade policies, and reevaluate operations ahead of key product launches like its next-generation foldable smartphones.
Intel
Thanks to its well-established presence stateside, Intel may actually be well positioned for a comeback as its competitors stumble through foreign trade fallout. The global chip manufacturer has been investing billions into its U.S. operations since 2021, including the construction of two facilities in Arizona. These plans expanded in 2024 with an additional $100 billion announcement to build and expand factories across several states, supported by a $7.86 billion federal grant thanks to the CHIPS Act. And, in the wake of Trump’s tariff policies, Intel has strategically entered into a partnership with TSMC to supplement its U.S. manufacturing arm, giving it a clear edge over its import-dependent competitors — especially as the dollar weakens.
Microsoft
Likewise, Microsoft is adjusting its supply chain — telling suppliers to start stockpiling components — while rolling out new pricing strategies. The company has already announced price adjustments for signature products that became effective April 1. For example, its Power BI Pro suite jumped from $10 to $14 per user per month, while Teams Phone Standard service increased from $8 to $10 per user per month.
Echoing initial tariff clapbacks in 2019, Microsoft President Brad Smith criticized the Trump administration’s tariff policy in a February blog post, urging a reconsideration of export controls on advanced AI chips. He warned that restricted access could “give China a strategic advantage” in AI technology and undermine the U.S.’s edge. In the meantime, Microsoft continues to build out its production footprint in Southeast Asia, in an effort to reduce its exposure to the U.S.-China standoff.
Most recently, rising tariff costs have caused the company to pull out of its $1 billion data center project proposed in Ohio. But the good news for Microsoft shareholders is that the legacy tech giant has officially overtaken Apple as the most valuable company in the world, at least for the moment.
Qualcomm
Qualcomm generated 46 percent of its revenue in 2024 from China-based customers. As a way to hedge against trade uncertainty, Qualcomm looks to expand its focus beyond smartphone chips, projecting $22 billion in revenue by 2029 as it invests more into automotive and IoT sectors. To further reduce tariff exposure, Qualcomm recently acquired AI-related assets through the Vietnam-based conglomerate Vingroup, shifting its global production operations away from China.
Following the November election, the company’s CEO Cristiano Amon highlighted a rosy outlook toward the new administration, expecting “a good relationship going forward” and feeling “very positive.”
Time will tell if that’s still the case.
Frequently Asked Questions
Did Trump impose tariffs?
Yes; Sweeping tariffs went into effect on August 7, 2025, ranging from 15 percent up to 50 percent for some trade partners.
What big tech companies manufacture products in China?
Nearly all major U.S. tech companies manufacture products in China, including Apple, Microsoft, Amazon, Google, HP, Dell, Intel, Cisco and Tesla. Apple leads the group, with nearly all of its devices — iPhones, iPads and Macs — assembled in China-based facilities. These companies heavily rely on overseas factories to build their laptops, desktops, EVs, batteries chips and networking gear.
What tech products are getting more expensive?
Rising tariffs on Chinese imports are expected to drive up prices on smartphones, laptops, tablets and consumer electronics across the board, including smart speakers, routers and gaming consoles.
