American Computer Industry In Problems Amid Trade War

American Computer Industry In Problems Amid Trade War

The heart of the American computer industry is getting hit from all sides of the trade war, CNN reported in analysis.

“Chipmakers have been punished over the past two months after the White House put Huawei in the dog house. President Donald Trump’s newly proposed tariffs on Chinese imports will sting even more”, CNN wrote.

Intel, Qualcomm and Advanced Micro Devices recently said that ongoing trade tensions with China and restrictions on selling to Huawei are weighing on their bottom lines and forecasts.

Tariff and trade uncertainties created anxiety across our customer supply chains,” Intel CEO Bob Swan said on a conference call with shareholders on July 25.

Huawei is laying off more than 600 people in the United States. Companies want the White House to resolve the trade war.

Instead, Trump said last week that the United States would impose a 10% tariff on the remaining $300 billion in Chinese goods that were not already subject to tariffs. Those goods, which will include laptops, smartphones and other technology, will hit the chipmakers particularly hard.

The Huawei ban threatens American businesses, too. Chipmakers have asked the Trump administration to allow sales to Huawei to resume. Last week, chief executives from seven US suppliers to Huawei met with Trump to discuss the restrictions. They included the CEOs of Qualcomm, Google, Intel, Broadcom, Micron, Western Digital and Cisco.

The Trump administration in May barred US firms from using Huawei telecom gear and from selling to the Chinese company. The US government fears Huawei’s telecom equipment poses a national security threat, a claim Huawei denies. The administration later added five additional Chinese companies to the same “Entity List” of banned businesses.


Tamara Kuzmanovic

Writer and journalist for Serbian, Swiss, Japanese and Singapore media since 1996. A former correspondent from the United Nations in Geneva. Based in the Serbian capital Belgrade I've also lived in Switzerland for 12 years. Graduated from College for marketing communication with a degree in advertising, English and public relations. My father was a Serbian MP and Belgrade University professor.

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