The war waged by president Trump against China with a motive of protecting America's dominance by derailing China's economic and technological supremacy has an adverse effect on the operations and management of the Tech business in America. The tariffs imposed on the $200 billion dollar Chinese goods affect the purchasing power of the consumers as well as the operations of the tech and telecom companies. It is because most of the tech companies in US outsource their production and assembly in China where such activities are cheaper as compared to United States. Due to this effect, some companies like Dell, Intel and Apple have to switch their operations to the emerging markets from China. However, they have warned that such actions are very expensive and can subject them to a high degree of losses due to cost increases either in the short or long run. These will inhibit US from dominating the generation of technology due to a low competitive edge as planned prior.
Even though Trump holds a contrary opinion to that of the tech companies, the Tech industry still postulates that the imposition of Tariffs on China will hurt the American Companies while doing a little to change China's trading strategies and operations. In relation to the statistics, it is the telecommunication products which lead the total imports from China. For instance, in 2014, the country imported 40% of the telecommunication products from China. It thus shows that if the Tariff is incorporated, the Tech companies are going to incur a cost worth hundreds of million dollars hence liquidation in the long run. Even though United States fight for the 5G wireless network dominance, the regulators would have listened to the warning which was given by the Nokia, Boise, and Micron officials. Besides, they would have prevented the legal actions which are to be undertaken by the Consumer Technology Associations to stop the move. These would have ended the war which exists between the tech companies and the Trump's administration.
