The U.S. technology sector is navigating significant trade policy uncertainty. The 90-day pause on reciprocal tariffs and key technology import exemptions provides temporary breathing room for the industry. However, substantial uncertainty persists regarding the ultimate tariff timeline and rates. U.S. officials have also telegraphed new tariffs for the semiconductor sector. In our report "Tariff Uncertainty Will Weigh On U.S. Tech Credit Outlooks", published April 24, 2025, our preliminary view is that global IT spending growth will likely slow to 5%-7% in 2025 from our previous forecast of 9%. We expect significant impact on consumer-focused products such as PCs and smartphones compared to enterprise-focused hardware such as servers, storage systems, and networking equipment. Semiconductor demand patterns will generally mirror those of
