…buy agricultural product from the U.S. in large quantities, but did not do so. Additionally, my friend President Xi said that he would stop the sale of Fentanyl to the United States – this never happened, and many Americans continue to die! Trade talks are continuing, and…

— Donald J. Trump (@realDonaldTrump) August 1, 2019

…We look forward to continuing our positive dialogue with China on a comprehensive Trade Deal, and feel that the future between our two countries will be a very bright one!

— Donald J. Trump (@realDonaldTrump) August 1, 2019

The latest levy is likely to intensify a trade war with China, which seems likely to respond with tariffs of its own. The 10 percent tariff effectively means all Chinese goods coming into the States will be taxed, and that cost will surely be passed onto consumers. So, devices made in China might well be more expensive for the foreseeable future.

Sony, for instance, has warned that tariffs may force it to increase the price of PlayStations, while some other giants such as Google and Nintendo are reportedly moving production to other parts of Asia. Foxconn has said it could make iPhones bound for the US outside of China too.

Last month, the US increased import tariffs on certain Chinese goods from 10 percent to 25 percent. If the tariff hike goes through, items like motherboards, smartphones, video game consoles and computers could be subject to the 25 percent tax. At that rate, Nintendo might be forced to sell its consoles at a loss in the US.

Some companies are better prepared than others to shift out of China if necessary. Apple Inc. partner Foxconn Technology Group said it would be able to manufacture all US-bound iPhones outside of China if it were forced to do so. Wistron Corp., a company that makes servers for Facebook and Microsoft, is reportedly looking to shift some production away from China, though it hasn’t shared specifics.

The trade wars are impacting Chinese companies, too, most notably, Huawei. In addition to losing Android support and being cut off from American chipmakers, Huawei has reportedly slowed its manufacturing operations. According to the South China Morning Post, Foxconn has stopped Huawei phone production on several lines in response to reduced orders.

The situation is still developing, and it’s not yet clear if these new tariffs will be made final. If they do become permanent, some companies will fare better than others, but all global tech companies could find themselves stuck between a rock and a hard place. And as we saw when the Game of Thrones finale was blocked in China, the trade wars could impact more than hardware.