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Donald Trump’s plan to tariff all foreign imports, especially goods from China, is projected to cause PC laptops to increase by an average of $357 in price for US buyers, according to a new study.
The estimate comes from the Consumer Technology Association (CTA), a trade group that represents major tech companies, including Apple, HP, and Microsoft, among others. Tom’s Hardware reports that the CTA has published a study that examines how Trump’s proposed tariffs could cause price increases across the electronics industry.
“Buyers of laptops, tablets and smartphones would feel the greatest impact,” the study warned since many of these products are made in China — the chief target of Trump’s tariffs.
(CTA)The study specifically looks at Trump’s proposal to tariff all foreign imports at 10% while also levying another 60% in tariffs on Chinese imports. If PC makers decide to fully pass on the tariff costs to consumers, then laptop and tablet prices would likely jump by an average of 45%. That’s because China produces about 79% of all laptop and tablet products while US output would only increase by an estimated 8% if Trump’s tariffs took effect.
Smartphones would see a similar price increase to $213 while video game consoles could jump by $246. The study, which was conducted through the research firm Trade Partnership Worldwide, arrived at the price increases by factoring the tariffs against supply and demand and trade levels between various countries.
(CTA)Although tariffs of foreign imports can spur domestic production, the study says “moving that quantity of production to other countries would be problematic, especially in the short term.” As a result, the CTA expects the US consumers would have no choice but to face the higher prices for electronics, which would also drive down demand. “Consumers will decrease their purchases of laptops and tablets by 54%, smartphones by 44%, and video game consoles by 57%,” the trade group estimated.
The study arrives when other economic groups have also been warning that Trump’s proposed tariff policy will raise consumer prices. Still, Trump has defended his approach, saying the tariffs will spark more manufacturing to return to the US. “We’re going to bring companies back to our country,” he told Bloomberg in an interview earlier this week. “We will grow. The only way you can do it is through the threat of tariffs.”