‘Pockets of Softness’ Evident as Higher Tariffs Loom, Says Analog Devices CEO

“Macro uncertainty,” rather than actual changes in buying behavior, characterizes the market mood as companies brace for the Trade Act Section 301 tariffs on Chinese imports to rise to 25 percent on Jan. 1, said Analog Devices CEO Vincent Roche on a Tuesday earnings call. “I’ve talked with quite a few customers” over the past two quarters, and most are “remaining optimistic, though there is obviously concern, which is dampening enthusiasm” for capital expenditures, said Roche. Though cancellations and lead times “for the most part are pretty normal,” there are “pockets of softness” throughout the market, he said. “I don’t get any sense that there’s any form of tension or panic-buying” to beat the higher tariffs, he said.