Dell Cuts Discounts As Tariffs Hit, Passes Rising Cost To US Shoppers: Bloomberg

Dell Technologies Inc DELL has eliminated or reduced the U.S. discounts on many of its computers.

The update coincided with President Trump’s tariff announcements last week and China’s retaliatory tariffs this week.

Dell stock fell on Thursday on the report.

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Dell’s online store offers lesser laptop and desktop discounts compared to the 2024 beginning, Bloomberg reported Thursday, citing Dell’s website.

CFO Yvonne McGill told investors in March that the company treated tariffs as an input cost intended to pass on to the customer.

The threat of disruption is particularly acute for electronics makers, who source their components and manufacturing labor from around the world. Consumer devices like laptops and smartphones lure customers by selling at the list price below under special offers.

Last week, Trump announced sweeping tariffs to boost global trade and American manufacturing.

These included a universal 10% tariff on all imports starting April 5 and significantly higher rates targeting around 60 countries for allegedly imposing barriers on U.S. goods. Many retailers and brands manufacture goods in China and Vietnam, which now have effective tariff rates of 125% and 46%, respectively.

Trump justified using emergency powers under the International Emergency Economic Powers Act of 1977, aiming to slash the U.S. trade deficit by $1.2 trillion.

Tech stocks, including hardware makers like Dell, lost value, fearing higher import costs and possible retaliatory tariffs from affected countries.

Dell’s drop also reflects concerns about exposure to foreign suppliers and the risk of rising component prices.

Dell stock plunged over 30% in the last 90 days. In March, JP Morgan analyst Samik Chatterjee stated that Dell’s AI server revenue could hit $15 billion in fiscal 2026, backed by 2,000+ enterprise deals and a $295 billion TAM opportunity.

Invesco QQQ Trust, Series 1 QQQ that tracks the Nasdaq-100 Index lost over 12% in the last 90 days.

Price Action: DELL stock fell 6.24% to $78.97 on Thursday.

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