In particular, the APAC tech sector has greater exposure to these issues, due to the region being the main assembly centre for the world’s technology hardware and the dominant manufacturer of most of the sector supply chain’s component parts.
Fitch Ratings has revised its 2025 outlook on the Asia-Pacific (APAC) technology sector to “deteriorating” from “neutral”, citing the direct risks from tariffs as reasons for the downgrade.
The ratings agency finds that tariffs not only hurt demand for hardware, but will also have second-order effects in the form of weaker consumer spending and economic growth globally as consumer confidence is affected.
