US tech firms feel pinch from China tariffs

BBC - Mar 12th, 2025

Deena Ghazarian's company, Austere, is among many US businesses feeling the strain of newly imposed tariffs by President Donald Trump. In 2019, Trump's tariffs on Chinese imports nearly drove Austere out of business. Now, Trump has reintroduced and expanded tariffs on Chinese, Canadian, and Mexican goods, aiming to address trade imbalances and other issues. The tariffs, now broader and affecting more products like smartphones and computers, have forced businesses like Austere to consider raising prices, risking customer loss. Industry leaders, such as Ed Brzytwa from the Consumer Technology Association, argue that these costs will ultimately burden American businesses and consumers.

The broader economic implications are significant, as the tariffs could lead to increased prices for tech goods globally if China relocates manufacturing to costlier regions. While some companies have diversified supply chains, the US still relies heavily on Chinese manufacturing. Trump's tactics, seen by some as a negotiation strategy, could change if economic conditions shift or concessions are made. However, retaliatory actions from China, Mexico, and Canada could further escalate tensions. Ghazarian, prepared this time, has stocked extra inventory but remains focused on survival over growth, highlighting the ongoing uncertainty facing US businesses under the current trade policies.

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RATING

6.4

Moderately Fair

Read with skepticism

The article provides a detailed examination of the impact of tariffs on businesses, with a focus on the challenges faced by companies like Austere. It effectively uses specific examples to illustrate broader economic trends, making the complex topic accessible to readers. While the piece is timely and relevant, it could benefit from a more balanced presentation of perspectives, particularly from those who support the tariffs or believe in their long-term benefits. The reliance on a limited number of sources and the lack of transparency regarding data collection methods are notable weaknesses. Overall, the article offers a compelling narrative that connects economic policy to real-world impacts, but it could be strengthened by incorporating a wider range of viewpoints and more authoritative sources.

Accuracy

The article accurately reports on the impact of tariffs imposed during Trump's presidency on businesses like Austere, citing specific figures such as a 25% surcharge on imports from China. The story mentions the broader scope of current tariffs compared to previous ones, which is consistent with external sources. However, some claims, such as the exact dates and rates of tariffs, require further verification. The article's claim about the specific impact on tech products like smartphones and laptops is supported by industry data, but more precise figures could enhance accuracy.

Balance

The article presents a primarily negative view of the tariffs' impact, focusing on the challenges faced by businesses like Austere. While it does mention Trump's stated goals for the tariffs, such as addressing trade imbalances and illegal immigration, the piece lacks perspectives from those who might support the tariffs or believe in their long-term benefits. Including viewpoints from economists or policymakers who support the tariffs could provide a more balanced perspective.

Clarity

The article is well-structured, with a clear narrative flow that makes it easy to follow. The language is straightforward, and the tone is neutral, allowing readers to understand the complexities of the tariff situation without confusion. The use of specific examples, such as Deena Ghazarian’s experience, helps illustrate broader points effectively.

Source quality

The article references credible industry figures and organizations like the Consumer Technology Association, which adds credibility. However, it lacks direct quotes from government officials or economists who could provide authoritative insights into the tariffs' broader economic impact. The reliance on a limited number of sources, primarily affected business owners and industry representatives, may affect the depth of the analysis.

Transparency

The article provides a clear narrative of the situation faced by businesses due to tariffs but lacks transparency regarding the methodology used to gather data, such as how the impact on consumer prices was assessed. It does not disclose any potential conflicts of interest or biases in the reporting, which could help readers better understand the context and limitations of the information presented.