Impact of Tariffs on Tech and Auto Industries

Tariffs have emerged as a significant concern for tech, media, and telecom companies, with varying levels of exposure across sectors. While software companies face minimal exposure, the hardware segment anticipates a more substantial impact. Many of these companies aim to manage tariffs by leveraging pricing power to pass increased costs onto consumers, although the effectiveness and timing of these adjustments depend on their inventory levels. The auto industry specifically could experience severe inflationary effects from new tariffs, potentially driving average monthly car payments above $800, affecting consumer affordability and decreasing total vehicle sales.