How new US tariffs are forcing Europe to rethink its entire tech stack

Summary

Is your cloud stack dangerously American?The answer might be yes, with new US tariffs crashing into global supply chains. Whether running AI models, spinning up infrastructure, or just trying to keep your SaaS lights on, the cost of relying on US-based hardware and cloud will rise. A lot. In this issue, we explore how the tariffs will reshape Europe’s cloud and AI landscape—and what you should be doing right now to protect your margins, roadmap, and resilience. Read on for the full article. US tariffs are here—and they’ve landed squarely on the backbone of AI and cloud infrastructure.On April 2nd, the US government introduced sweeping tariffs on imports, notably from tech hardware manufacturing hubs in East Asia. In a nutshell, US hardware manufacturers and resellers - even as a service - will pay a lot more to maintain production in the short term. The fallout? A sudden and potentially severe cost increase for European companies building or running anything in the cloud. At the time of writing, no reciprocal (re-reciprocal?) tariffs have yet been introduced by the EU, but it’s a distinct possibility. This isn’t just a spreadsheet problem. It’s a strategic one. Let’s break it down. What’s Getting More Expensive?HardwareData centre gear—servers, networking equipment, racks, switches, the whole lot—is about to get pricier. Think of enterprise-grade server hardware suppliers: Dell, HP, and many more. If designed or assembled in the US, the price increase will be passed on to EU buyers. Cloud ServicesUS-based providers like AWS, Azure, and Google Cloud may pass infrastructure cost increases to customers. Given that such providers already offer top-of-market pricing as a general rule, the days of cheap hyperscale cloud might be over—at least for Europe. AI DevelopmentGPUs (think Nvidia, AMD) are mostly fabbed in Asia but are still designed in the US, and some are caught up in the tariff dragnet. Even where there’s an exemption, future uncertainty makes long-term AI proje...