From the perspective of the division of labor in the global tech industry chain, most of the end-consumer products are produced in mainland China and Asia, and these regions might be affected by the current US tariff policy, BOCOMI released a report saying.

The tariff may have the most direct impact on electronic products with optional attributes such as smartphones and PCs, according to the broker. Considering the larger magnitude of the tariffs, BOCOMI believed that most of the tariffs may be borne by consumers, while the demand for products such as handsets and PCs may be more sensitive to price hikes. Consumer demand for handsets and PCs may be more affected.

BOCOMI also believed that tariff policy has far-reaching impact on the technology industry chain, and the US Federal Government's policies are fast-changing and highly uncertain.

Investors are advised to be cautious in allocating to techs before there are clear signals on tariff and trade policies, and to focus on tech companies with stronger balance sheets and good bargaining power in the industry chain. Investors are also advised to keep an eye on opportunities for domestic substitution in the semiconductor industrial chain.
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AAStocks Financial News
Web Site: www.aastocks.com

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