Tech's two roads through Trump's tariffs

US tech companies are strategically navigating President Trump's trade war, balancing supply chain diversification with efforts to gain his favor. Companies like Apple and Nvidia are shifting production to minimize tariff impacts, relocating manufacturing to countries like Vietnam and India. Simultaneously, they engage in appeasement, making large investment announcements and attending high-profile events to secure exemptions. Nvidia's CEO met with Trump, and subsequently, export restrictions on its chips were reportedly lifted. Apple also successfully lobbied for tariff exemptions on iPhones in the past. However, Trump's recent warnings suggest these reprieves might be temporary. This strategy involves inflating investment numbers, combining existing and new projects, and publicly crediting Trump's influence. These investments are subject to change later. Microsoft and OpenAI have employed similar tactics. Hardware companies like Apple and Nvidia face greater tariff risks than software companies. A potential economic downturn from the tariffs could affect all firms. Ultimately, the actual spending on these announced investments remains to be seen.