(David Paul Morris/Bloomberg via Getty Images)
New estimates project that prices for laptops and smartphones could increase by around $250 if the US's pause on "reciprocal" tariffs lapses, and President Trump carries out his threat to tariff more imports, including semiconductors.
The Consumer Technology Association (CTA) has been urging the Trump administration to pull back the tariffs over the risk of cost increases across the electronics industry. Its estimates project that US consumer spending could decrease by $123 billion per year if Trump imposes tariffs on 10 major electronic categories, including desktops, game consoles, and monitors.
(Credit: CTA)According to the study, desktop prices could jump by an average of $287, followed by monitors at $111. Consoles, however, could increase by a whopping $428, assuming vendors fully pass on the tariff cost to consumers.
"Consequently, US laptop and tablet prices could increase by as much as 34%, or potentially as much as $269 on top of the average retail price of a laptop today (estimated at $793), and $152 added to the average retail price of a tablet today (estimated at $447),” the report adds. “Such cost increases would drive US consumers to reduce overall purchases by 46%.”
The CTA published initial estimates in early January before Trump took office. The administration has since rolled out concrete tariff policies, including a 20% duty on all Chinese imports and “reciprocal tariffs” on numerous Asian countries, such as Vietnam, India, and Cambodia, which are home to electronics manufacturing.
Although Trump has issued a 90-day pause on the reciprocal tariffs and temporarily exempted Chinese-assembled computers and phones from full 145% tariffs, the CTA is still concerned about rising costs if the Trump administration decides to go all in on tariffs again.
In response, the CTA’s new estimates try to calculate the potential price increase consumer electronics in the US will face if the pause on the reciprocal tariffs ends, and Trump goes ahead with his plan to tariff foreign-made semiconductors, including Chinese-assembled phones and computers, at a theoretical 25% rate.
The resulting trade policy would hit countries and products with tariffs at varying rates, meaning companies could try to shift some manufacturing to markets with lower tariff rates. However, ultimately, the CTA expects vendors to raise prices to offset the higher import fees.
(Credit: CTA)We're already seeing price increases. Most notably, Microsoft last week announced it’s raising Xbox prices globally, possibly to offset the tariff increase for Xbox hardware sold in the US. As a result, the Xbox Series X now costs $599, up from $499 when Trump’s tariffs currently ensnare Chinese-assembled video game consoles at 145%.
Nintendo has also increased prices for some Switch 2 accessories; it relies on suppliers in Vietnam, Cambodia, and China. Meanwhile, many vendors, including Apple, are trying to source their US inventory from markets outside of China, but things could change as the White House negotiates trade deals with numerous countries.