The article discusses how the Trump administration's tariffs are causing uncertainty in the IT industry, leading CIOs to pause new projects. Jefferies reports on the effects of these tariffs, stating that while some products like smartphones are exempt, business uncertainty remains, causing delays in decision-making. This trend underscores a broader issue of earnings risk for tech companies, with major vendors such as HP and Apple reported to be suspending shipments from China. The overall sentiment suggests a cautious approach is being adopted by IT leaders amid fluctuating trade policies.
"It seems unlikely we can snap back to the 'normal' cadence of decision making and it seems inevitable some decisions will push to the right, meaning they will be postponed."
"We see IT as a structural growth industry, but one where the timing of new business decisions can get deferred... This creates earnings risk across the sector."
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