Trump's new tariffs could increase tech prices, research suggests

The US elections are getting closer and closer, and the candidates have already revealed many of their proposals. The potential measures in the economic sphere are raising special expectations due to the impact they could cause, not only in the country but worldwide. A new study has estimated how much the potential price increases in consumer electronics in the US would be after the tariffs proposed by Trump.

Trump aims to maintain a protectionist approach to the US economy

During his first term, Donald Trump implemented a protectionist economic policy. This involves trying to promote domestic production and consumption by imposing tariffs on foreign products or technologies. The Trump administration implemented the first severe economic restrictions against Huawei, thereby initiating a trade war against China. Then, the Biden administration continued along that path, even escalating the severity of the sanctions.

Looking ahead to a potential second term, we can expect Trump to follow the same line. In fact, the presidential candidate has already revealed some potential tariffs that he would implement on foreign technology. As in the first phase, they would be especially harsh on products from China. That said, the Consumer Technology Association (CTA) shared a report with estimates of the potential price increases on consumer electronics that Trump’s new tariffs would bring.

The potential price increases that Trump’s new tariffs would bring

The CTA’s research focuses mainly on two tariffs proposed by Trump. There’s a 10%–20% tariff on imports from all countries and a 60% tariff on imports from China. According to the report, these new tariffs would bring potential price increases of 46% on laptops and tablets, 40% on video game consoles, and 26% on smartphones.

The CTA bases the results of its research on the strong presence of Chinese technology in the US consumer market. This is especially noticeable in the PC hardware segment. The research also indicates that the 60% tariff on Chinese imports could potentially undermine Trump’s objectives. The CTA suggests that this will lead to big tech companies moving their production to other countries. Plus, potential price increases would impact public interest in buying new products.