The new tariff offensive by former president and current candidate Donald Trump has unleashed a genuine storm in the global storage device market. With the activation of Executive Order 14257 and its Annex II, which includes heavy tariffs on imports of SSD units, HDDs, and other electronic products, the United States aims to curb Chinese influence, but the collateral effects could be devastating for the entire tech industry.
Price hikes of up to 145%: a direct blow to storage
While semiconductors themselves are currently exempt from the new tariffs, the products containing them do not share the same fate. Digital storage units are, notably, one of the primary targets: SSDs, HDDs, LTO tapes, writable Blu-ray discs, and other devices will be taxed at rates ranging from 10% to 145%, depending on the country of origin.
According to estimates by Blocks & Files, the tariffs are as follows:
| Country of Origin | Tariff Applied to SSD/HDD |
|---|---|
| China | 54% – up to 145% in some cases |
| South Korea | 26% |
| Japan | 24% |
| Taiwan | 32% |
| Vietnam | 46% |
| Singapore | 10% |
| Malaysia | 24% |
| Thailand | 36% |
| Philippines | 18% |
| European Union | 18.5% |
Immediate impact on industry giants
Manufacturers like Western Digital, Seagate, Kioxia, Toshiba, and Samsung will be directly affected. A significant portion of their assembly lines is spread across Asia and other countries outside the U.S., making their products targets for these new tariffs.
- Seagate, for example, produces disks in China, Singapore, and Thailand. An HDD manufactured in China could see its price double following the imposition of tariffs.
- Kioxia, which produces SSDs in Japan and China, faces a tariff cost of up to 54% for its devices with Chinese origins.
- Samsung and SK hynix will suffer increases of 26% on their units assembled in South Korea.
- Sony, which manufactures LTO tapes in Japan, will face a surcharge of 24%, while Fujifilm, which produces in the U.S., becomes a net winner by being exempt.
Investors on alert: falling margins and uncertain demand
Reactions have been swift. Daniel Ives, an analyst at Wedbush Securities, was emphatic:
“This tariff policy could set the U.S. tech sector back a decade. It is disrupting global supply chains without offering a viable alternative in the short term.”
Analysts and investors fear the following consequences:
- Demand destruction due to price increases for the end consumer.
- Disruption of capital expenditure (CapEx) plans in tech companies.
- Paralysis of innovation amid regulatory uncertainty.
- Forced redesign of supply chains that have been globalized for decades.
The risk of forced relocation
In light of this situation, manufacturers may be compelled to repatriate production to the U.S. or allied countries to avoid the tariff penalties. However, the investments needed to move factories from Asia to North American soil are enormous and slow.
“Can hard disk factories be built in New Jersey next month?” quipped an industry executive. “The answer is no. And Trump knows it. He is forcing a global negotiation through economic pressure.”
A trade war with cross-effects
The consequences are not limited to imports. China has already announced retaliatory tariffs of 34% on technology products originating from the United States, including semiconductors. Companies like Intel and AMD, which export from the U.S. to Asia, may also see their sales in that crucial market limited.
Furthermore, there is fear of a domino effect: if other countries replicate Trump’s tariff strategy, U.S. technological exports could become isolated.
Who wins amid the storm?
Paradoxically, some players emerge as temporary winners:
- Fujifilm, by producing LTO in the U.S., strengthens its position against Sony.
- Huawei, banned in the U.S. but with secured markets in Asia, remains unaffected by the conflict.
- Companies with domestic manufacturing, such as IBM or NetApp, which assemble a significant portion of their solutions in the U.S., are insulated.
Conclusion: a reordering of global hardware
Trump’s tariff offensive is not merely a trade dispute. It is a geopolitical battle that threatens to redefine the architecture of the global tech industry. With historic price increases, potential shortages, and the risk of massive relocation, the digital storage sector faces a turning point.
The question hanging in the air is clear: is the world ready for a technological future with closed borders and inflated costs? For now, manufacturers, distributors, and users can only wait and adjust their strategies in a chess game where each move has million-dollar consequences.