US-China trade wars could pull in Google, Facebook
(FinancialPress) —Silicon Valley is feeling the trade wars‘ heat.
The White House is weighing in on imposing tariffs on networking equipment imported from China. Companies that source their cloud computing equipments from the Asian market could see themselves affected by the proposed move, according to market experts. Notables in that group include Amazon (),, Facebook ( ), and Google ( ).
Added to that, American chipmakers such as Intel () could find themselves fronting the cost of additional tariffs on computer chips. While they are fully manufactured in the US, their products are later shipped to China for testing, assembly and packaging. The outsourcing could end up with the manufacturers paying a penalty when bringing their products back into their country of manufacture.
Silicon Valley had managed to keep itself off of the trade dispute‘s crossfire this far. However, with new tariffs threatening the bottom line of their tech products, their industry leaders may have to take a stance on the issue soon.
Daniel Ives, CSO and head of technology research for GBH Insights, feels that “[as you see] what types of products they’re hitting, I think it becomes a lot more tangible, and a lot more real” for tech companies.