The Consumer Technology Association (CTA) stated that the upcoming tariffs announced by President Donald Trump’s second tenure could impact consumer electronics demand in the United States due to an expected price increase. 

The CTA projects a retail revenue growth rate of 3.2% ($537 billion) compared to 2024 for the US consumer technology industry but warned of a decrease in the purchasing power of consumers due to the proposed tariffs.

This tariff plan is not new, as it was implemented in the first Trump presidency as part of his “America First” economic policy. However, CTA, the trade group of electronics vendors, has estimated a drastic increase in prices across the board for various electronic gadgets:

  • Laptops and tablets – 46% to 68%
  • Video game consoles – 40% to 58%
  • Smartphones – 26% to 37%
Consumer-electronics-demand-US-tariffs

The estimated increase in consumer electronics device prices is driving down demand for PCs (by as much as 68%), gaming consoles (by as much as 58%), and smartphones (by as much as 37%).

The CTA report also indicated that tariffs on tech products could decrease US consumer purchasing power by $90 to $143 billion.

These estimated tariffs are high but are notably higher on Chinese-made products, which, according to reports, can range from 60% to 100% flat tariffs. 

While these tariffs are proposed to pressure other countries, especially China, to meet their demands, the CTA cited that this decision may backfire and affect US businesses and consumers instead.

In another electronic trade group’s survey, IPC reported that 68 percent of electronics manufacturers and suppliers are at least moderately concerned about the impact of the potential tariffs on the US electronics industry.

The IPC report also showed that 38% of their members plan to pass the full cost of any increase in tariff to their customers, 19% intend to share the burden, and four percent said they are willing to absorb the entire cost without raising prices.  

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