Case Study
Trump’s Tariffs Are Crushing Margins—Fight Back
April 14, 2025
If you're building or leading a company in the tech space, chances are you’ve already felt the ripple effects of President Trump’s sweeping new tariffs.
Announced in early April 2025, the U.S. government introduced a 10% tariff on all imported goods—plus a massive 125% tariff on products from China, including core tech components.
The reaction from the industry? Fast, strategic—and a little chaotic.
But beyond the headlines, what do these tariffs actually mean for your business? And more importantly: how can you stay competitive, keep costs in check, and avoid getting caught in the economic crossfire?
Let’s break it down.
Why Is This a Big Deal for Tech?
Because tech doesn’t just build products—it builds them globally.
From chips to cables to the devices in your hand, nearly every major U.S. tech company relies on international supply chains. China, in particular, has been the backbone of manufacturing for decades.
So when a 125% tariff drops on Chinese imports, it's not just a policy change—it’s a pricing shock.
Take Apple, for example. As soon as the tariffs were announced, they rushed to airlift over 600 tons of iPhones from India to the U.S. just to get ahead of the increase. That’s an expensive move—even for Apple. But it shows how urgently big tech is trying to soften the blow.
Markets reacted instantly. Within days of the announcement:
In short, confidence took a hit. And the message was clear: rising costs + unpredictable supply chains = high-risk business environment.
They go up.
Phones, laptops, monitors, components, even smart home devices—if it’s built abroad and coming to the U.S., it’s probably getting more expensive.
Analysts estimate up to 20–30% increases on retail pricing in the coming months, depending on how companies handle the tariff hit. In other words: the cost of doing business just got higher.
What’s the Strategic Play?
That’s the billion-dollar question.
Big tech companies are already trying to diversify manufacturing—shifting production from China to India, Vietnam, and even Mexico. But let’s be honest: supply chain realignment doesn’t happen overnight. It takes time, money, and infrastructure.
So what can companies do in the short term?
While you may not be able to avoid rising material costs, you can control another big chunk of your budget: labor.
We’re seeing a growing number of tech companies respond to margin pressure by hiring full-time remote talent across Latin America.
Why?
It’s not just about saving money—it’s about building a smarter, more resilient workforce that isn’t tied to a single geography or economic policy.
Remote Talent as a Strategic Lever
In the face of trade disruptions, a remote-first or remote-friendly strategy helps companies:
And with a partner like Athyna, it’s easier than ever to find (up to 5 days), hire, and manage vetted remote professionals that integrate seamlessly into your team.
No one’s thrilled about the tariffs. They’ve created complexity in an already complex world. But like every moment of disruption, this one presents an opportunity—for those willing to adapt.
If you're looking for a lever to offset rising costs and protect your bottom line, global remote hiring might be the most strategic move you can make this year.
The world just got a bit more expensive. That doesn’t mean you can’t still grow smarter.
Let’s talk about remote talent sourcing.
