Global Tech Spending Slows as U.S. Tariffs Take a Toll

Global technology spending is expected to fall short by nearly $6 trillion in 2025, marking one of the sharpest downturns in recent years. Much of the decline stems from the ripple effects of U.S. tariffs, which have disrupted supply chains, increased costs, and forced companies to rethink where and how they invest. How Tariffs Are Reshaping the Tech Industry Tariffs on raw materials and components are driving up expenses for tech firms that depend on global supply networks. Semiconductor makers, electronics producers, and software companies all face higher costs that either eat into profits or get passed along to consumers. For many businesses, the pressure is especially heavy in emerging markets where inflation and weak infrastructure already limit growth. Higher costs make long-term investments harder to justify, leaving companies more cautious about expansion and innovation. Shifts in Investment and Strategy Instead of aggressively funding R&D or expansion, tech firms are ...