Tariffs Trigger Strategic Shift in Enterprise Tech Investments

The US tariffs introduced under the Trump administration are prompting enterprise technology firms to rethink their strategies amid rising costs and economic uncertainty, according to GlobalData. Beyond immediate IT budget pressures, these policy shifts are driving changes in supply chains, vendor diversification, and sourcing models, ultimately reshaping global tech investments and intensifying challenges around AI talent mobility and access in an increasingly fragmented world.

The report reveals that the tariffs represent a monumental shift in economic and foreign policy that will have lasting repercussions on long-term international trade patterns, economic growth, employment, access to skill sets, and startup investment, all of which will impact enterprises across the world. “As the global economy contracts and organizations begin layoffs, expect enterprises to invest in AI that can offer greater automation. The use of robotics, computer vision, and GenAI will help organizations reduce labor costs. However, expect some AI startups to take a hit from reduced access to capital and for countries across the globe to grow AI investments now that they can no longer rely on the US to act as a reliable ally,” commented Rena Bhattacharyya, Chief Analyst and Practice Lead for Enterprise Technology and Services at GlobalData.

GlobalData notes that the current political and economic environment favors the development of sovereign strategies instead of a reliance on global partnerships. Over the past decade, various European cloud initiatives have emerged at both the EU and national levels, but none has significantly challenged the dominance of US-based hyperscalers. “This significant shift could provide new momentum for European alternatives such as OVH or Bleu. Previously, the smaller scale of indigenous competitors, vendor lock-in and convenience, as well as hyperscaler willingness to work with Europe on regulatory compliance, has slowed any drastic shifts in enterprise sourcing. In the future, organizations will be much more reluctant to rely on the US to the same degree as they have been for critical IT infrastructure,” noted John Marcus, Principal Analyst for Enterprise Technology and Services at GlobalData.

Additionally, layoffs spurred by a contracting global economy will impact the enterprise AI skills shortage. On the one hand, talent may be more readily available, and compensation levels may fall. On the other hand, growing interest in AI solutions will drive up demand for skilled professionals who can deploy the complex technology at scale. “More interesting will be how evolving foreign and economic policies impact the mobility of skilled AI professionals. It is unclear whether nationalistic tendencies will encourage experts to remain in their home countries. Preferences may not only be impacted by compensation levels but also by international attention to recent US treatment of immigrants and guests, as well as controversy at academic institutions,” concluded Bhattacharyya.