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For anyone wondering why most of the major technology shares have decreased throughout the week, the answer can often be summarized by one word: definitions.
Since US President Donald Trump announced a new tariff, a few weeks after the previous round, the American economy was in turmoil, as it swept the uncertainty, which prompted entire financial markets.
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Panic is already placed as both investors and consumers think about the possibility not only in the bear market but from the full recession. For months, economic experts have raised concerns about the impact of these commercial policies, but the administration has pushed forward.
Now, as fear in the most darker days in the American economy, business leaders put the reason for their belief that these definitions are unwanted and explain who will be the most affected.
A technology trading leader highlights the warning on the Trump tariff
While Trump has repeatedly claimed that the customs tariff would benefit the American economy by creating job opportunities and reducing its dependence on commercial partners, many experts have argued that the opposite is true. Michael will respond from the American Institute of Institute that they will not revive the American manufacturing.
He is far from the only person who believes the wide effect of definitions will be negative. Other experts have argued that the definitions will lead to the high prices of most commodities, as companies will turn the burden of high costs to consumers.
Related: Trump’s movements are a tariff that carries great risks to everyone
This includes many companies in the field of consumer technology that will face higher import and manufacturing costs. The head of a group represented recently we discussed the place where he stands on these definitions, and highlights some important concerns he has.
Gary Shapiro is CEO and Vice President of the Consumer Technology Association (CTA), a commercial group representing the interests of more than 1,200 companies in space. in statement It was released on April 2, and issued some dark economic predictions for the near future.
“The Americans will become poorer because of these definitions,” he says. Shapiro describes them as “huge tax heights” that would eliminate jobs for Americans who work hard and can eventually make stagnation.
“This will not be a golden age-but to return to the global economic catastrophe of SMOOT-Hawley definitions in the thirties of the twentieth century, which will harm Americans with low incomes and work inappropriately,” he adds, with a highlight of the 1930 tariff law, which is widely attributed to the United States’ diving in great depression.
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Jay Timmons, head of the National Factory Association, issued a similar statement on the impact of definitions, on the pretext that they will establish global manufacturing in America with the threat of supply, jobs and investment chain.
The technology sector in America faces a very uncertain future
If TimMons predictions are correct, most technology companies are likely to be at risk as the constant definitions continue to complicate the global economy and investors to be careful.
Several technology companies have decreased over the past two days in response to the news of the sweeping tariff, including NVIDIA ((Nvda)) Microsoft, ((Msft)) Amazon ((amzn)) None of them showed signs of recovery.
Related: Mark Kobe has some explicit words about the real influence of definitions
Timing ((Timing)) It also goes down, but it may be partial due to the recent delivery operations, which Short From the estimates of Wall Street size.
“Some companies have agreed to play the ball with Trump’s introductory strategy,” Fortune reports. apple ((Aapl)) For example, I promised to build artificial intelligence servers in the United States; Honda says she will build a factory in Indiana. Hyundai says she will build a steel factory in Louisiana. But even if these companies are a follow -up, it will take a long time, and it will just be a decrease in the labor market bucket. “
This highlights an important aspect of the anti -fire argument. It is possible that the increased manufacturing operations in the United States will take years. In the near future, many Americans will have to deal with high prices and volatile economic conditions.
“Do not make mistakes: American consumers, families and workers will feel real pain,” Shapiro warns.
Related: The Veteran Fund Director reveals the prediction of the S&P 500
