2 Reasons Tech Hardware Stocks Like Dell Aren’t Free from Trump’s Tariff Problems
The Trump administration announced exemptions for some imported tech hardware products—including smartphones, computers, and other items—from so-called reciprocal tariffs on China late Friday. While the estimated tariff hit for hardware computers under analyst Erik Woodring’s coverage fell from more than $50 billion, or 30% of operating profit, to $7 billion, or 4% of operating profit, after the exemptions, he says it isn’t time to get optimistic on the sector. “We remain guarded on our group as a whole,” he wrote on Monday, citing the potential for new technology sector tariffs and chief information officers’ intentions for deteriorating technology spending budgets.