There’s been reporting on the impact of tariffs.
In the latest report on enterprise technology, companies are increasingly vulnerable to the disruptive effects of tariff policies under the Trump administration, as well as market volatility influenced by cryptocurrency trends. Earnings reports from major players such as Google Cloud and ServiceNow show differing levels of resilience; Google Cloud reported a revenue growth of 28% while ServiceNow exceeded Wall Street estimates for both revenue and profit. Conversely, companies like IBM and Intel are facing significant challenges. IBM’s stock dropped by 6.6% after acknowledging that its consulting contracts with the federal government were adversely affected by the current economic climate, while Intel issued a revenue forecast for the second quarter well below expectations.
And Semafor reporting on the small business impact. Small businesses are increasingly feeling the impact of tariffs imposed by President Donald Trump, prompting calls for relief from Capitol Hill and the business community. Senator Jerry Moran of Kansas is advocating for tariff exclusions specifically for small businesses, emphasizing that without these exclusions, their success and the American Dream are at risk. Moran has engaged with United States Trade Representative Jamieson Greer, highlighting concerns for small manufacturers who rely on critical parts for their operations. Initially, the administration indicated there would be no exclusions, but recent comments suggest a shift in policy, with some exclusions now being considered. As the discussion continues, small businesses are looking for immediate support to navigate these challenging economic conditions.
Why do we care?
Tariffs are not a background noise—they’re actively redrawing the risk map for enterprise tech and small businesses alike. From major players like IBM and Intel to small manufacturers and SMB clients, the effects are rippling through technology spend, service demand, and even the structural viability of key client segments. This isn’t just a trade story for IT services providers—it’s a strategic inflection point.
Google Cloud and ServiceNow still posted strong results, but IBM and Intel stumbled, citing shrinking consulting opportunities and weak forecasts. The difference? Cloud and SaaS players offer scalable, cost-efficient solutions. Hardware-heavy or long-term consulting engagements are taking the hit first. IT services firms that still focus on traditional infrastructure or slow-cycle government consulting work are exposed.
In SMB, cash flow is constrained, and discretionary spend (like IT projects) is vulnerable. If you’re servicing SMBs, expect delays, renegotiations, or cancellations—unless your offerings are positioned as essential, not optional. Tariff-driven uncertainty is accelerating the shift from CapEx to OpEx. Promote managed services, cloud licensing, and consumption-based infrastructure models that help clients flatten spend. And be aware, If tariff pressure continues without meaningful exclusions or relief, some small businesses will simply fail.