HP Inc (HPQ) saw its stock price plummet 9.25% in pre-market trading on Thursday, as investors reacted to news of significant tariffs imposed by the Trump administration. The sharp decline comes as a direct response to the announcement of a 25% tariff on imports, which is expected to have a substantial impact on PC and disk drive manufacturers.
The new tariffs, unveiled by President Trump, are set to affect a wide range of imported tech products and components. This move has sent shockwaves through the technology sector, with PC and disk drive makers being particularly vulnerable due to their reliance on global supply chains and imported parts. According to reports, electronics constitute the second biggest sector of imports, standing at nearly $486 billion in 2024, and come from countries now facing some of the steepest tariff rates, including China, Taiwan, and Vietnam.
HP Inc is not alone in facing market pressure from this development. Other major players in the tech industry are also experiencing significant pre-market drops. Dell Technologies led the decline with an 8.6% fall, while storage solution providers Seagate and Western Digital saw their shares sink by 4.7% and 5.2% respectively. These widespread losses underscore the potential far-reaching consequences of the new tariff policy on the entire tech manufacturing sector. Analysts warn that companies like HP could face 10% to 25% cost increases, potentially adding $200-$500 per unit, which may force them to either raise prices or accept reduced profit margins.
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