The rate will force the supply chain out of the black box
Donald Trump stopped US tariffs on electronics when his government prepared an investigation of the entire supply chain and the semiconductor sector for national security reasons. It piled up pressure on companies from Lenovo to Dell to reveal more information about where their goods were made.
Investors scramble to oversee Trump’s trade war. On Friday, Washington stated an exception to goods including smartphones and laptops from reciprocal-based tariffs, including 145% hit in China which is a large electronic supplier to the US on Sunday, Trump clarified that he plans to announce tariffs for semiconductors over the next week.
Many chips brought to the US came packaged into the device; The computer itself contributed around $ 100 billion shipping in 2024, versus more than $ 80 billion for semiconductors. Describe the implications more complicated by the lack of insights about where the product comes from.
Take Lenovo worth $ 13 billion, whose shares have fallen around 20% since April 2. Laptop makers registered in Hong Kong, who reported about one third of sales in America in the first half of last year, had more than 30 manufacturing facilities globally, but were not damaged where and in what amounts he produced notebooks and other development.
That makes investors and analysts hunt for instructions. Last year, the ESG group report revealed that more than 80% of Lenovo’s Scope 2 carbon emissions, which included the energy used in manufacturing facilities, originated from mainland China. It shows that most of the production is in the country of Washington to dub the “enemy”.
Rivals such as Dell and HP Inc. are the same light in numbers in submission, and outsourcing makes the risk more difficult to decompose. Such opacity is also in power in the fashion and retail industry. The company refrain from revealing more because it gives them competitive advantage to costs.
It doesn’t have to be like this. Apple, who flew 600 tons of iPhone to the US from India to beat the tariff, said its production was located “especially” in China and five other countries: Trump also hinted on Sunday that the $ 3 trillion company could benefit from the flexibility of tariffs. Car makers including Toyota and Hyundai shared monthly updates about regional production, breaking the number of units produced in different locations, or even plants. Pharmaceutical giant such as Astrazeneca list of main manufacturing bases and places where each specific step in the process of making drugs occurs. Trump’s trading attacks are bad but will force the company to let a little more light.
Source: Reuters
