US President Donald Trump's tariffs on China will create a "category 5 price storm" for tech consumers in the US and drive global market share gains for Chinese tech companies over the coming years, Wedbush Securities said in a Tuesday note.
"50% China tariffs, 32% Taiwan tariffs would essentially cause a shut-off valve from the US tech landscape and in the process cause every electronic to go up 40%-50% for consumers," Wedbush said.
Trump's plan understates the complexity of Asia's supply chain, leaving US companies like Apple (AAPL), Nvidia (NVDA), Microsoft (MSFT), and Advanced Micro Devices (AMD) vulnerable, according to the investment firm.
The tariffs would also cause a significant slow down in the "AI Revolution trade," Wedbush analysts said.
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