BUZZ-PC makers plummet following Trump's tariff on imports

Reuters
04-03
BUZZ-PC makers plummet following Trump's tariff on imports

** Shares of PC makers tumble in premarket trading following U.S. President Donald Trump's reciprocal tariffs on Wednesday

** Electronics constitute the second biggest sector of imports, standing at nearly $486 billion in 2024, and come from countries with some of the steepest tariff rates including like China, Taiwan and Vietnam

** The Trump administration plans to hit China with a reciprocal tariff of 34%, on top of the 20% that is already in place, Vietnam 46% and Malaysia with 24%

** PC makers Dell Technologies DELL.N fall 8.5%, HP HPQ.N down 7%

** Server maker Hewlett Packard Enterprise HPE.N down 5% and Super Micro Computer .SMIC.O falls 7.5%

** J.P. Morgan estimates an average ~5% price increase across hardware to offset tariff related headwinds on margins, with the highest increases for PC manufacturers, followed by servers, and networking

** Dell, HP could face 10% to 25% cost increases, adding $200-$500 per unit, pushing prices up or margins down, says Tony Redondo, founder at Cosmos Currency Exchange

** Rising costs on displays, memory, and peripheral components will likely lead to trimmed feature sets and pricing pressure in mid-range PC segments - Abhishek Singh, partner, Everest Group

** Up to last close, DELL down 17.3%, HPQ down 14.6% YTD

(Reporting by Priyanka.G in Bengaluru)

((priyanka.g@thomsonreuters.com;))

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