For those who haven’t been keeping up, President Donald Trump has started implementing tariffs on countries like Mexico, China, and Canada, and the tech industry is definitely feeling the heat.
With most tech imports coming from China, these new tariffs could shake up the consumer tech scene. We’ve talked about the potential consequences before, but now that the tariffs are officially in place, it’s time for buyers to brace themselves. To break it down, Trump has set 25% tariffs on merchandise coming from Mexico and Canada, and 10% on goods from China. While we’re steering clear of political debates, let’s dive into how this could hit the consumer tech industry, drawing insights from past predictions and comments from organizations like the CTA.
Here’s a tweet that puts the ongoing trade situation in perspective:
> “The trade war has officially begun, here’s our take on it:
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> 1. New tariffs of 25% on Mexico, 25% on Canada, and 10% on China are now live. We must first put this into perspective.
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> 2. Mexico and Canada’s exports to the U.S. account for approximately 78% and 77% of their total…
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> — The Kobeissi Letter (@KobeissiLetter) February 2, 2025”
China stands out as a major supplier of consumer tech to the US, particularly when it comes to essential PC hardware. With these 10% tariffs, there’s a likely spike in component prices, though it’s tough to pinpoint just how steep those increases will be. Trump’s mentioned that the US could up the tariff ante if China’s response isn’t favorable. We’ve previously reported that hardware prices could soar by as much as 40% if tariffs on China climb to 60%, as Trump suggested during his campaign.
Considering the ripple effects, laptops and tablets could see prices jump by 46%, video game consoles might rise by 40%, and smartphones could become 26% more expensive.
Research indicates that a uniform 60% tariff on all Chinese imports would largely push production to countries other than the United States.
– CTA
Tech giants like NVIDIA, AMD, and Microsoft have already prepped for these tariffs, suggesting they might pass on the cost to consumers, citing these policies as a reason. So, while there’s no need for outright panic, the industry is expected to see a bump in prices—not just in tech but in other sectors, thanks to Mexico and Canada’s influence in various consumer markets.
It’s safe to say we’ve walked into a trade war, or at least a simmering one, and the burden will likely fall on the average consumer, particularly in tech. We’re optimistic that the situation could improve over time, but as it stands, things are on track to get quite complicated.
