Well, for those unaware, President Donald Trump has imposed the first layer of tariffs on nations like Mexico, China, and Canada, and when we talk about the tech industry, well, things aren’t looking too good.
Trump Tariffs Could Potentially Disrupt Consumer Tech Industry, Since A Majority Of Imports Are From China
We have discussed the impact of tariffs on the consumer industry plenty of times in the past, but it seems like with the official implementation, buyers must prepare for what’s ahead. For those unaware, Trump has imposed tariffs on multiple countries, and here’s what they look like: 25% on Mexico, 25% on Canada, and 10% on China. While we won’t go much into the political implications of this decision, let’s see what the consumer technology industry may have to witness, based on our estimates, and what bodies such as the CTA have said in the past.
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…
— The Kobeissi Letter (@KobeissiLetter) February 2, 2025
Starting with China, the nation is one of the biggest exporters of consumer tech to the US, with a significant portion accounting for PC hardware essentials. Initially, with the 10% tariff policy, we can see a sudden rise in prices for components, although the scale of the increase isn’t specific for now, since Trump has claimed that the US will take an even harsher stance if the nation sees a response to these tariffs. A while ago, we reported on how hardware prices could see up to a 40% rise, given that the tariff percentage on China reaches up to 60%, as pledged by Trump in pre-election campaigns.
- Laptops and tablets by 46%
- Video game consoles by 40%
- Smartphones by 26%.
The research also shows that the 60% flat tariff on all imports from China will largely drive production to other countries, not to the United States.
– CTA
Companies like NVIDIA, AMD, Microsoft, and many more have already prepared for Trump’s tariffs, which means that these firms won’t hesitate in raising consumer prices by giving the President’s policy as an excuse. While consumers certainly shouldn’t panic over this move, it is safe to say that the industry will witness a rise in pricing, and not just the tech markets, but other domains as well, given that Mexico and Canada have their fair share of other consumer industries.
It won’t be wrong to say that we have entered a trade war, or at least an undeclared one, but the cost will have to be paid by the average consumer, especially those in the technology markets. We do hope that the situation improves in the future, but by the looks of it, things are about to get messy.