If you haven’t heard yet, President Donald Trump has kicked off the first round of tariffs on countries like Mexico, China, and Canada, and it’s safe to say the tech industry isn’t thrilled.
### Trump’s Tariffs Could Unsettle the Consumer Tech Market, Given That Most Imports Hail from China
We’ve delved into how tariffs affect the consumer industry before, and now with their official rollout, it’s time for customers to brace themselves for what’s next. Trump’s tariffs hit various countries hard: 25% on Mexico, 25% on Canada, and a 10% on China. While we won’t dive deep into the political aspects, let’s focus on what these tariffs might mean for the consumer tech field, based on our insights and what organizations like the CTA have previously highlighted.
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
First up is China, a leading exporter of consumer tech to the US, especially in PC hardware. With the initial 10% tariff, prepare to see an uptick in prices for certain components. The precise impact remains unclear for now, as Trump hinted at potential stronger measures if there’s backlash to these tariffs. Previously, we reported about a possible 40% price surge if the tariff on China escalates to 60%, consistent with Trump’s pre-election promises.
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, and Microsoft have already set plans in motion to adjust to these tariffs, meaning they’re likely to shift the increased costs onto consumers, citing this policy as the reason. While it might not be time to hit the panic button, it’s fair to predict rising prices across the board—not just in tech markets, but in other sectors too, as Mexico and Canada contribute to a variety of industries.
We might be entering a trade war, or perhaps we’re in an undeclared one, but it’s the regular consumer who’ll feel the pinch, especially in technology. One can only hope the scenario improves down the line, though it seems we’re in for a rough patch.
