Impact of Trump’s Proposed Tariffs on Tech Gadgets Prices

A recent report suggests that Americans' beloved tech gadgets may face a significant price surge due to Donald Trump's proposed tariffs. The president-elect has indicated plans to impose tariffs of 10% on US imports and a substantial 60% on products from China. A study conducted in October focusing on consumer technology anticipates price hikes for laptops, smartphones, and TVs.

Price Surge on Tech Gadgets

According to the Consumer Technology Association's report in October, under President-elect Donald Trump's proposed tariffs, consumers can expect a rise in prices for various big-ticket tech purchases. Trump's tariff strategy includes a blanket tariff ranging from 10% to 20% on all imports, along with an additional flat tariff of at least 60% on Chinese goods. Economists have expressed concerns that these measures could elevate prices for American consumers and contribute to inflation.

Previous Tariff Impact

During his initial term, Trump fulfilled many of his economic promises from his campaign by imposing tariffs in 2018 and 2019 on specific US imports from China, such as steel, semiconductors, and EVs. An analysis from the Cato Institute revealed that these tariffs cost the average American household approximately $830 annually.

Consumer Technology Sector Vulnerability

The proposed tariffs by Trump are expected to affect more than just a few key items, particularly impacting the consumer technology sector. The CTA report highlights that prices would escalate on common tech products purchased by US consumers, potentially reducing spending power in the sector by $90 billion.

Anticipated Price Increase

Products heavily reliant on Chinese suppliers would witness substantial price hikes. For instance, laptops and tablets could see a price surge of up to 45%, translating to an additional $200-$350. In a similar vein, smartphones might experience over a 25% increase in consumer prices, amounting to more than $200 from their previous average cost.

Projected Price Hikes

Under the proposed tariffs, the report suggests that video game consoles could become nearly $250 more expensive, while monitors might see an increase of over $100. Televisions are estimated to incur a 9% price rise, adding an extra $48 on average.

Impact on Consumer Behavior

To counter the escalating prices, consumers are likely to cut back on purchasing such items, potentially leading to a 54% drop in laptop and tablet sales and a 44% decrease in smartphone purchases.

Gary Shapiro, the CEO of the Consumer Technology Association, and Vice President of International Trade Ed Brzytwa cautioned in the October report that the repercussions of these tariffs on consumer technology could extend beyond the sector. They highlighted concerns that the tariffs might not foster employment or manufacturing growth in the US and could potentially hamper productivity and lead to job losses over time.

Source: Business Insider

—————————————————————————————————————————————
By: esnodgrass@businessinsider.com (Erin Snodgrass)
Title: Impact of Trump’s Proposed Tariffs on Tech Gadgets Prices
Sourced From: www.businessinsider.com/buy-new-laptop-smartphone-technology-before-trump-takes-office-tariffs-2024-11
Published Date: Tue, 12 Nov 2024 23:17:54 +0000