Tariffs 'Unambiguously Severe' on Information, Communications Tech Sector, Says Analyst
The American information and communications technology sector is bearing an especially heavy burden from “bilateral tariff escalation” between the U.S. and China, Rhodium Group analyst Lauren Gloudeman told reporters on a conference call, based on a its report for the…
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U.S. Chamber of Commerce (see 1903140001). Friday's report called costs “unambiguously severe” on the ICT industry, she said. The Trump administration’s tariffs “raised prices for nearly one-third of ICT imports from China, which is equivalent to nearly 20 percent of the ICT imports around the world,” said Gloudeman. “Bilateral tariffs result in lower GDP, employment, investment and trade flows” for the U.S., she said. “We see higher import and export prices, meaning higher costs for consumers and businesses.” Long-term ICT “productivity growth” is at risk through lower U.S. “competitiveness” and production stagnation, Gloudeman said. “U.S. GDP would cumulatively face $1 trillion in losses within 10 years across all tariff-escalation scenarios that we modeled,” she said, $64 billion to $91 billion yearly in the first five years. The Office of the U.S. Trade Representative didn't comment Monday.