Even before the latest tariff threats, U.S. tech companies were having trouble with China. And it looks like it's only getting worse, writes tpoletti.
Even before President Donald Trump’s latest threat of tariffs against Chinese goods can fully be digested, tech companies are facing other concerns about spending amid uncertainty associated with the U.S. and China.
“Our outlook is really determined on the discussions that we have with our largest global accounts,” NetApp Chief Executive George Kurian said in a surprise conference call after the warning. “I think, if you looked at other players in the IT hardware segment that reported — like Intel INTC, -2.08% , for example, or IBM IBM, +1.40% — they had, you know, pretty tough comments about the spending landscape.
Those losses came on the heels of stocks getting slammed in the regular session, after Trump tweeted that he would be imposing 10% tariffs on an additional $300 billion in Chinese goods. Tech is one of the areas that will be most affected by the new tariffs. “Two of our largest customers that were impacted by the China dispute shrank their capital spending by 30% year-on-year, and that has meaningful consequences even to IT hardware spending,” Kurian said.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
The Fed May Have Had No Choice But to Confuse Us AllJerome Powell faces an interesting challenge: how be clear about his intentions, even as he’s improvising to clean up Trump’s messes.
Read more »
BMW profits drop on higher costs, spending for new techLuxury automaker BMW saw net profit fall 29% to 1.48 billion euros ($1.63 billion) in the second quarter from a year earlier as profits were reduced by higher spending on revamping factories and on new technologies such as battery-only cars and smartphone-based services.
Read more »
Tulsi Gabbard borrows from Trump's tech bashing playbookGabbard, a Hawaii congresswoman running an unorthodox bid for the Democratic nomination, accused Google in court last week of violating her free speech.
Read more »
Wall St. higher on tech boost, focus shifts to earningsU.S. stocks bounced back on Thursday, helped by technology shares as focus shift...
Read more »
Wall St. rebounds on tech strength, eyes shift to earningsU.S. stocks rebounded on Thursday from a steep selloff in the prior session, boo...
Read more »