For those who might not be clued in yet, President Donald Trump has kicked off the first wave of tariffs targeting countries like Mexico, China, and Canada, and it’s looking a bit grim for the tech world.
So, what do these Trump tariffs mean for the consumer tech industry, especially considering that a large chunk of imports come from China? We’ve already examined the potential fallout from these tariffs on the consumer market before, but now that they’ve officially come into play, shoppers need to brace for what’s to come. To break it down: Trump has slapped a 25% tariff on goods from Mexico, 25% on Canada, and 10% on China. Rather than dive into the political backstory, let’s focus on how this move could shake up the consumer tech space, drawing from past insights from associations like the CTA.
A tweet from The Kobeissi Letter neatly sums up the situation:
“The trade war has officially begun, here’s our take on it:
1. New tariffs of 25% on Mexico, 25% on Canada, and 10% on China are now live. We must first put this into perspective.
2. Mexico and Canada’s exports to the U.S. account for approximately 78% and 77% of their total…”
Starting with China, it’s one of the main suppliers of consumer tech to the US, especially when it comes to PC hardware. With this new 10% tariff, we can expect prices for these components to go up, though the exact amount isn’t clear yet. Trump has hinted at even tougher measures if there’s a backlash to these tariffs. In the past, we’ve speculated that hardware prices might jump as much as 40% if Trump’s tariff on China hikes to 60%, as he once suggested on the campaign trail.
Looking at some projections:
– Laptops and tablets could see a 46% price increase
– Video game consoles might rise by 40%
– Smartphones may go up by 26%
The CTA has pointed out that such a steep 60% tariff could push production to other countries instead of boosting manufacturing in the United States.
Big names like NVIDIA, AMD, and Microsoft have already geared up for these tariffs, which suggests they’ll likely pass on these costs to consumers, using the tariffs as a justification. While there’s no need for consumers to panic, it’s pretty much a given that prices will climb, not only in the tech sector but across various industries, given that Mexico and Canada play roles in other consumer markets too.
It feels like we’re in a trade war—or at least on the brink of one—and unfortunately, it’s the average consumer, especially those buying tech, who will bear the brunt. Here’s hoping the situation improves, but for now, it seems we’re in for a bit of a rough ride.
