Scotland’s technology industry is bracing for significant challenges following warnings from IDC that new US tariffs will disrupt global IT spending and supply chains. The tariffs, announced by Donald Trump on April 2, impose a 10% baseline levy on imports, including technology products, with potential ripple effects across Scotland’s economy.
IDC has revised its global IT spending growth forecast from 10% to closer to 5%, citing the inflationary impact of tariffs and supply chain disruptions. The consultancy predicts immediate price hikes for hardware due to lean inventories and rapid manufacturing cycles. Software and IT services are also expected to suffer if tariffs persist, as providers face increased infrastructure costs.
Scottish Concerns: Tech and Beyond
While Scotland’s tech sector is not as export-heavy as industries like whisky or salmon, the tariffs will still have indirect effects on local businesses reliant on imported technology components. Deputy First Minister Kate Forbes expressed concerns about the broader economic impact, noting that trade barriers could harm Scottish businesses dependent on the US market.
John Swinney, Scotland’s First Minister, emphasized the “double whammy” facing Scottish companies: higher costs from tariffs combined with increased employer National Insurance contributions in the UK. He called for a “big and bold response” from Westminster to mitigate the damage.
Despite the challenges, IDC highlighted that demand for AI infrastructure and as-a-service models remains strong globally. Scottish tech firms may find opportunities in these areas to offset some of the negative impacts.
Dr. Liz Cameron CBE, CEO of the Scottish Chambers of Commerce, warned that tariffs would be “very damaging” for Scotland’s economy. She urged politicians to engage constructively to protect jobs and growth. Similarly, Anthony Wills of Islay’s Kilchoman distillery highlighted how smaller producers could struggle under the new regime—a concern echoed by smaller tech firms reliant on international partnerships.
The US tariffs present a complex challenge for Scotland’s tech sector and broader economy. While resilience and adaptability will be key, industry leaders are calling for urgent government action to safeguard jobs and investment.
