Adapted by:
Javier Pastor
Senior WriterComputer scientist turned tech journalist. I've written about almost everything related to technology, but I specialize in hardware, operating systems and cryptocurrencies. I like writing about tech so much that I do it both for Xataka and Incognitosis, my personal blog.
Alba Mora
WriterAn established tech journalist, I entered the world of consumer tech by chance in 2018. In my writing and translating career, I've also covered a diverse range of topics, including entertainment, travel, science, and the economy.
The impact of President Donald Trump’s tariffs isn’t just about increasing the price of the iPhone. It extends to several industries around the world. The consequences of these measures are unpredictable, but certain sectors are likely to be hit particularly hard.
The snowball effect could be significant. Take Apple–one of the first major companies affected by Trump’s tariffs–as an example. While it remains uncertain if Apple will raise the prices of its iPhone or other products, it’s evident that tariffs will increase the overall cost of doing business for the company.
If costs rise, Apple will need to implement measures to maintain profitability, especially if its sales decline and consumers become more budget-conscious. As Apple tightens its spending, other companies may follow suit.
Apple might respond by making cuts in several areas of its operations. One clear option is to reduce its advertising budget. For example, Apple could decide to invest only half of what it previously spent on social media advertising, particularly on platforms like Meta. According to eMarketer, social media platforms are expected to be among the most affected by the decline in ad spending.
Experts expect that advertising budgets in the U.S. could see cuts ranging from 12% to 41% due to the impact of tariffs. | Image: eMarketer
As a result, Meta CEO Mark Zuckerberg might see a significant decline in revenue from the core of his business: advertising. If advertising revenues drop, he’ll need to work to retain advertisers while adapting to the changing circumstances.
According to MarketWatch, this reduction in advertising spending will have a particularly strong impact on the media. Some media outlets may cope by adopting mixed revenue models that combine advertising with subscriptions. However, they won’t be immune to the effects of this downturn. Many consumers may choose to cut back on their monthly subscription payments and unsubscribe, at least temporarily, from content.
With less ad revenue for Meta, the company will need to make cuts as well. This often means concentrating efforts on successful business areas while placing others in “low power mode.”
Layoffs are a likely option, but Meta might also slow down its investments in AI. The company could delay the development of its Llama 4 model family. If this happens, it’ll ultimately affect institutions, companies, and independent developers who rely on these models as a foundation for their projects.
A similar situation may arise for Microsoft. Increased tariffs could theoretically raise the cost of maintaining its services and vast cloud infrastructure. At the same time, this could lead to potential price hikes for Microsoft 365 and other services. However, Microsoft has already made preemptive moves to mitigate these costs.
The company has started scaling back its projects aimed at expanding infrastructure. For several months, Microsoft had been investing in new data centers around the globe. However, it’s recently altered its plans, canceling or pausing the creation of data centers worldwide. This poses a significant challenge to its commitment to AI.
The situation could worsen as retaliation from other countries against Trump’s tariffs may exacerbate the problem. For instance, China has responded to the 104% tariff increase threatened by Trump by raising tariffs on U.S. goods exported to China from 34% to 84%. The European Union is also preparing its response. As this situation escalates, the implications could become even more significant.
Image | Adam Nir
Related | U.S. Tariffs Threaten a Gigantic Domino Effect on the Global Economy. The First Domino Is Big Tech
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