System builders say server prices set to spike as Trump plays customs cowboy The cost of buying servers for business will inevitably rise as a result of US President Donald Trump's trade policies, at least in the short term, as uncertainty grips the supply chain. The White House last night announced a base tariff of ten percent on all imports into the US from April 5. On April 9, the US will then add " …
It was American Capitalism that allowed US factories making PC’s, Laptops, Servers, Memory, CPU’s, hard disks, TV’s, audio equipment, home appliances etc to be closed and off-shored/outsourced to Mexico, Far East.
Why - well paid jobs, union membership, benefits… all ‘too expensive’ and easier to send to Foxconn in China. You can still see these aggressive practices at Amazon, Apple, Starbucks …
Apple primarily manufacture in China and India. (India not Indiana or Native Indian for the MAGA slow in critical thinking).
That’s an active choice to nickel and dime hard working Americans.
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As seen with Indian Business Machines (IBM) - and others - this is continuing above today with support. Services, consulting to Bangalore to Indian solution centres,
That’s an active choice to nickel and dime hard working Americans.
Trump will be back for tariffs on Services next. Those jobs are as important to Manufacturing.
Why Tim Cooke replaced Steve Jobs,as the recognised supply chain ‘genius’ responsible for much of this … yet he had the front to buy a inauguration VIP package and be on stage. That takes some brass neck and lack of humility.
i bet Foxconn and Apple wish they had indeed finished and not ditched the Mega Factory in Wisconsin and done better than give lip service to the Austin Mega Factory that never was new during Trump 1.0.
It was HP that started the transfer of knowledge of PCB manufacturing to Taiwan, which by themselves build up the knowledge to build high layer stack of PCB that runs notebooks and servers now. Now the US blames Taiwan for stealing technology big US corp give to them to make huge amount of profits with ultra slim margins for the manufacturers.at the same times the US steals fab kowledge from Taiwan and gives nothing in return. I can tell you this is very hard to digest by the Taiwan population., but no worry. They wont make a fuss of this, time will tell.. There is no way manufacturers will digests these cost, it will have to come back from US electronics consumers or global cloud consumers (data centers products), even it is already build in USA today. But if you can pay 1500 for a graphic card, 2000 isn't much different. It is not going to make a dent in the butter for manufacturers as long as there are American who will buy, and there are many many of them
> Is this actually worthy of an article.
Yes.
Maybe you haven't noticed, but (alongside all the fun with biting the hand etc) The Register does actually report on things that will impact those working in the tech industries. Like prices going up.
They also report on prices going down, parts running low, parts in a glut, new things coming, old things going.
Doesn't matter if you think any particular reason for those changes is too trivial to report on - because, hey, maybe there is something else going on as well - a bit of price gouging whilst they have something else to blame?.
Perhaps even a miracle may happen and next week we can refer back to this article when it turns out that industry didn't panic like sheep seeing the shadow of a wolf, but they kept calm, used their current stocks and held out for the whole 6 days until DT changed his mind again[1]. Hard to refer back if the article wasn't written in the first place.
[1] wow, beginning to think that fruit juice at lunch packed more of a punch than I realised! Totally drifted off into fantasy land.
I understand that, but is it actually news to anyone?
Like we all knew at the start of this tarrif nonsense that the price of everything will go up.
Sure trying to cancel the CHIPS act is news, but once you already know tarrifs and price hikes are coming and very notably for PC components (which has been actual news for the past few years) what part of this is new or surprising.
If the article actually had hard numbers or was able to tell you anything you would not already know, that's news, but putting up something to the effect of 'what they said they would do, they are now doing' is not news.
Do we need an article telling us tomorrow will be Friday?
"Only in the US.
I don't think that is completely true.
Initially, probably for sure, as the import-related costs increases they experience for whatever they use will go up by 'X' percent and may/may not be passed on to indigenous customers. However:-
If Supermicro choose to 'eat' the loss in margin caused by the import tariffs, then they'll remain as competitive as they are currently. If they pass on any amount of these extra costs to their non-US/export customers (The usual thing to preserve margin), then the price increase will, of course, be seen in the export territories..
This will make the UK, EU and other countries more attractive to hi-tech companies as setting up a processing facility will be 20/30% cheaper if the IT is coming from China or Taiwan. This is the tariff burden US based business will have to bear. The US market is smaller than the rest of the world for most products. With global reach the non-US companies can afford lower margin on US business to further reduce the market for US based business. Whereas the US based businesses may be shut out of the world market by a higher cost base on top of reciprocal tariffs.
A double whammy. Over time the new world order may shift high tech out of the US.
He's running a country as a business, this is all he knows unfortunately you cannot run a country as a business you need some political skills combined with dioplomacy and empathy.
He's doing a good job with bullshitting though, which you either believe or you don't and you either vote for him or you don't. Just like brexit , there's no going back once it's done.
Just cause he's made money from running his own corporate tax credit claiming practices to get rich quick doesn't mean it will work here, an economy is far more complicated.
Let's see what happens in about a year or so this will start to dig in.
The score so far:
The Trump Network - MLM scam
Trump University - Fraud
Trump foundation/charity Fraud
Trump Tampa - failure & fraud
Trump Soho - bankrupt
Trump golf Aberdeen - scam
Trump golf Puerto Rico - Bankrupt
Trump Chicago - default 40 million
Trump Panama - lawsuit corruption
Trump Baja Mexico Fraud & failure
Trump fort Lauderdale Scam & failure
Trump Vodka - business failure
Trump Wine
Trump Steaks - business failure
Trump Shuttle - loan default failure
Trump Air & Trump Pac business failure
Trump Taj Mahal - 4 bankruptcies
Trump Marina/Trump Castle - bankrupt
Trump Plaza - Bankrupt
Trump Indiana Riverboat Casino - bankrupt
Trump IPO ticker DJT failure
Trump Atlanta - failure
Besides, America is not a business it's a country which is supposed to at least in theory:
establish justice, insure domestic tranquility, provide for the common defense, promote the general welfare, and secure the blessings of liberty to ourselves and our posterity
Well it is a nice theory, it would be to bad if something happened to it.
Until someone tries to figure out how to do it, tariffs only apply to physical things, not software or data. Therefore, if I was a company considering putting a datacenter in the US, I'd consider instead putting it in Canada or Mexico. Especially with Canada, they have plentiful access to power and lots of high-bandwidth links to the US networks. That wouldn't work for things that are incredibly latency-sensitive, but a lot of the internet isn't. Avoiding those tariffs would make for a large incentive to invest that DC cash in a different country, quite the opposite of the intended result.
