At first glance, software may seem immune to global trade policy. While it’s true that digital goods aren’t directly taxed under the new tariffs, that doesn’t mean the software industry is unaffected. 

Behind every SaaS product is a deeply interconnected system of cloud infrastructure, semiconductors, globally distributed teams, and region-specific pricing. Software may be digital — but its foundation is very much physical.

And as businesses shift to more cloud-based solutions, the higher costs of networking infrastructure (routers, wireless points, etc.) could lead to increased operational costs for cloud infrastructure. 

Then there’s the classic trickle-down effect: tariffs hit physical goods, triggering supply chain disruptions, inflated costs, and growing uncertainty. In turn, businesses start cutting budgets, reprioritizing vendors, and delaying purchases — all of which directly affect what software they need and how they buy it.

Bottom line: The software industry will be under pressure to do more: help businesses stay agile, manage risk, and operate across borders. All while navigating changing infrastructure costs and shifting procurement expectations, resulting in many software vendors will have to consider increased costs and lower demand in their own pricing assumptions.