Global IT spending projections have been downgraded to between 5% and 9% growth in 2025, according to a revised outlook from market intelligence firm IDC, as escalating tariff concerns cloud the economic landscape.
The update comes amid a 90-day delay on the implementation of new tariffs that has left businesses and consumers facing heightened uncertainty through the second half of the year.
IDC analysts warn that recently announced tariffs—particularly those targeting semiconductors, electronics, and key manufacturing inputs—are already weighing on global demand and supply chain confidence.
These pressures are forcing organizations to reassess investment timelines and reevaluate vendor relationships. The slowdown in tech procurement in North America has already impacted IDC’s baseline forecast.
“Consumers are likely to feel a significant pinch from these tariffs,” said Crawford Del Prete, president of IDC. “Popular devices like smartphones, earbuds, and PCs could see price hikes due to component sourcing disruptions. Supply chain constraints may also lead to limited product availability and longer delivery times.”
According to IDC’s Stephen Minton, group vice president for Data & Analytics, “The 90-day delay hasn’t eliminated the risk—it’s extended the uncertainty. That’s affecting business sentiment, which in turn is cooling short-term IT spending. We’re also watching closely for longer-term shifts in supply chain strategies that could permanently alter how and where tech products are made.”
The broader tariff context
Tariffs—government-imposed taxes on imported goods—are often used as tools in trade disputes to protect domestic industries or penalize foreign competitors.
However, they typically result in higher prices for consumers and businesses, especially in industries with complex global supply chains like technology.
The latest tariffs, targeting a wide range of goods from semiconductors to EV components, are part of ongoing tensions between major global economies.
Their impact could ripple across sectors, from consumer electronics to cloud infrastructure.
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