How Trump’s tariffs are shaking up the cybersecurity sector

The tariffs could further erode cybersecurity budgets by increasing the prices of necessary technology equipment, such as servers and other digital hardware, that organizations purchase from outside the US. 

“Tech industries, even if they are mostly services-based, interact with manufacturing in some way,” economist Alex Durante at The Tax Foundation, a nonprofit, nonpartisan tax policy institute, tells CSO. “IT infrastructure needs mainframes and servers, which require semiconductors and other electronic components that will be facing tariffs.”

Shift to regional cyber companies could lead to stagnant products

The imposition of tariffs could further cause non-US customers of US cybersecurity companies to shift their cyber spending to local or regional cybersecurity vendors, which are now suddenly lower-cost alternatives. Experts warn, however, that although these local options may be cheaper in the short term, placing too much reliance on them could erode the long-term vitality of cybersecurity products.