Foxconn: Trump's tariffs prepare tech giants “big headache”

The warnings of the international effects of the U.S. government's soulful customs policy under President Donald Trump from the Tech sector become louder. On Friday with Foxconn, one of the most important suppliers of US corporations such as the iPhone farmer Apple, the cloud service provider Amazon or the chip manufacturer Nvidia. “The topic of tariffs is currently a great headache for our customers CEOs,” said the CEO of the Taiwanese supplier, Young Liu, in a conference call with investors when presenting sales and profit figures. Measured by the attitude that Trump's team shows at tariffs, be it “very, very, very difficult to predict how things will develop next year”.

Foxconn therefore has no choice but concentrating on “doing it well what we can control,” emphasized Liu According to the Financial Times In the outlook. More and more US customers of the company pushed for Foxconn to move production skills more to the USA in cooperation projects. According to the report, he did not provide any details because the negotiations have not yet been completed. Foxconn estimates that his Apple dominated business with information and communication products will remain stable in 2025. “But in view of the uncertainties in connection with geopolitics and tariffs, the production will face challenges and demand could also suffer,” Liu admitted. The group will work closely with its customers to adapt its global presence.

Foxconn itself is affected by the trump administration attempts to move more production facilities to the United States. The lion's share of the manufacturing capacity is in China. Products manufactured there should be more expensive for exports to the United States through an additional custom of 10 percent. Larger production locations for the Taiwanese are also India and Vietnam, since Apple is significantly expanding there when it comes to manufacturing. Both nations are on the Trumps list for countries with increased customs claims. Foxconn also builds the world's largest factory for Nvidia Blackwell servers in Mexico. For neighboring country, US President Zölle in the amount of 25 percent of imports to the United States. Just only predicted by Elon Musk's e-car companies that Trump's customs policy should also make production in the United States more expensive.

Liu did not share that the cloud conductor could cut their expenses this year. Rather, the success of the Chinese AI company Deepseek in the development of a large voice model with lower hardware investments will probably encourage more medium-sized companies to advance their own relevant skills. That would further increase the question of servants. Due to this expected growth, cloud and network products 2025 would make up half of the company's sales and thus overtake the business with consumer electronics. Due to weak margins, the latter loaded Foxconn's balance for a long time due to weak margins. Surprisingly, the group for the fourth quarter reported a decline in profits, which it attributed to a minus with less relevant external income.


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