Star analyst makes a grim prediction for the tech market | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

With a wave of Trump’s newly announced tariffs about to go into effect on April 5, U.S. consumers and businesses alike are preparing for a blow unlike anything they’ve ever experienced.

The tariffs, as many experts predicted, heavily impact tech industries that manufacture goods using parts from China and other Asian countries.

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That translates to major trouble for the tech industry, which has relied on Asian supply chains for everything from chips to hardware since the 1990s.

Now key financial analysts are sharing their takes on what Americans can expect in the coming months when it comes to their tech products — and the outlook is not good.

The price of iPhones could skyrocket in the very near future, according to Wedbush.

Source&colon; Bloomberg/Getty Images

Wedbush’s Dan Ives speaks on Trump’s tariffs

Wedbush’s longtime tech analyst Dan Ives weighed in on the topic via an X post on the morning of April 4, saying, “Dark days ahead for tech until cooler heads prevail.”

Ives also shared Wedbush’s note, which wastes no time in laying out the situation.

“In 25 years covering the markets and tech stocks, we have been through many chaotic market and crisis moments,” it reads. “From the Dot.com bubble and burst to the financial crisis to Europe debt to Covid lows in March 2020…but never have we (or others who have covered the markets for 50+ years) seen a self-inflicted debacle of epic proportions like the Trump tariff slate over the last 36 hours.”

The note goes on to call the tariff chart “convoluted,” saying, “The concept of taking the U.S. back to the 1980s “manufacturing days” is a bad science experiment that in the process will cause an economic Armageddon in our view and crush the tech trade, AI Revolution theme, and overall industry in the process.”

Ives and the Wedbush team also weighed in on the tariffs on April 3, calling them “illogical and absurd.”

More tariffs news:

What it means for U.S. consumers

Wedbush’s note highlights one thing that will alarm the millions of people in the U.S. who use iPhones: the price could go up to $3,500. That leaves Apple with a very difficult decision — absorb the additional expense, or pass the increased price on to customers. Fear around the tariffs has caused Apple’s stock to take a significant nosedive, down 19.95% YTD at the time of this writing.

Ives also predicts “every electronic to go up 40%-50% for consumers,” so it’s not just Apple users who have to worry. From computers to televisions to video-game consoles, many are manufactured overseas, meaning they will also be affected.

Another key tech innovation that will suffer is the development of AI, which companies have been leaning heavily into over the last few years. AI is a notoriously expensive field, with players such as Meta, Alphabet, Microsoft, and Amazon pouring billions into development.

Consumers may also have to expect much higher costs on all vehicles made outside the U.S., as Trump’s 25% tariff on those vehicles went into effect April 4. Mexico is the biggest player among those imports, as it sends 2.5 million vehicles to U.S. dealerships, but the tariff will also hurt Japan, Canada, South Korea, and Germany, to name a few. S&P Global Mobility reports that nearly half of the 16 million new cars purchased every year in the U.S. are imported.

Ives’ last word

Ives ends his note by stressing just how much of a punch the tariffs will deliver to the entire tech market, as well as its consumers.

“If these tariffs went into place at current form, overall tech earnings would come down 15% at least, the supply chain will be a Rubik’s Cube rivaling Covid days, and the economy would go into a recession/stagflation,” he writes. “We assume tariff negotiations start now, otherwise dark days are ahead for tech…and U.S. consumers pay the price for this…not a debate.”