TechFlow news, April 4 — renowned financial institution Wedbush reported that the tariff policies proposed by the Trump administration within the past 36 hours could trigger the worst crisis for tech stocks in 25 years.
According to the analysis, tariffs on mainland China and Taiwan will severely impact the U.S. technology industry's supply chain, potentially causing electronics prices to rise by 40%-50%. Taking the iPhone as an example, its price could surge from the current $1,000 to $3,500.
This policy would significantly disrupt the technology supply chain. Since the 1990s, Silicon Valley has relied on Asian supply chains to produce chips, hardware, and components; 40 years of global trade have brought affordable tech products to the United States.
While automotive, industrial, and technology leaders support reciprocal tariff measures, unlike in the 1980s, current tariffs would heavily damage tech trade, the AI revolution, and global industries.
The report forecasts that these tariff policies may lead to a 15% decline in tech company earnings, disrupt supply chains, and potentially trigger a recession or stagflation. It also notes that building domestic manufacturing facilities in the U.S. would take 4–5 years and face challenges such as high labor costs and insufficient reserves of skilled technical workers.
