US President Trump's trade policies, particularly tariffs on China and Mexico, are creating substantial uncertainty for PC suppliers and consumers. Estimates suggest costs of PCs could rise by up to 68% due to these tariffs, which also resulted in negative impacts on stock markets and GDP growth forecasts. The unpredictable nature of tariffs has led to inventory stockpiling among computer distributors and resellers, who usually prefer minimal stock due to aging and cost implications of unsold devices. Analysts predict 2025 will be a very dynamic market as these trade issues continue to unfold.
"President Trump's ongoing trade war with Canada, Mexico, and China has had swift negative repercussions for the stock market and pushed the US GDP growth forecast for Q1 2025 into negative territory," said Canalys analyst Greg Davis.
"In addition to the direct impact of tariffs, the stop-start nature of announcements and delays have cast uncertainty around pricing for consumer electronics this year. The tariffs have prompted mitigating actions across the PC industry, with vendors and channel partners engaging in some recent stockpiling of devices."
A survey of US computer distributors and resellers by Canalys indicates that 50 percent had upped PC inventory to five weeks or more in January versus 29 percent in November, when the new US president was elected.
The channel - the term for companies operating in the supply chain - typically prefers to hold less kit in warehouses, because devices age and cost money to discount if they don't sell.
Collection
[
|
...
]