If you haven’t been keeping up, President Donald Trump’s decision to slap tariffs on countries like Mexico, China, and Canada is making waves, especially in the tech world, and not in a good way.
### How Trump’s Tariffs Might Shake Up the Consumer Tech Scene, Given Heavy Reliance on Chinese Imports
We’ve talked numerous times about how tariffs can affect consumer industries, but with their formal rollout, brace yourself for what’s coming. Trump’s tariffs break down like this: a hefty 25% on Mexico and Canada each, and 10% on China. Although we’re steering clear of discussing the political side, it’s essential to consider how these changes could rock the tech industry and echo past statements from groups like the Consumer Technology Association (CTA).
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
Let’s focus on China, which plays a huge role in supplying consumer tech to the U.S. With the new 10% tariff, prepare for a spike in the cost of key PC hardware components. How big will the hike be? That depends, especially since Trump hinted that the U.S. could impose sterner measures if these tariffs provoke a backlash. Not too long ago, we speculated that hardware costs might soar by up to 40% should tariffs on Chinese imports hit the 60% mark, a figure Trump tossed around before the election.
– Laptops and tablets by 46%
– Video game consoles by 40%
– Smartphones by 26%The analysis further suggests a 60% across-the-board tariff on Chinese imports could redirect production to other countries, not back to the U.S.
– CTA
Big names like NVIDIA, AMD, and Microsoft have already started gearing up for Trump’s tariffs. They might not shy away from bumping up prices for consumers, citing these tariffs as the reason. While there’s no need to hit the panic button just yet, it’s fair to say an uptick in prices across various industries is on the horizon, not just in tech. Canada’s and Mexico’s exports cover a wide array of consumer goods.
It’s not exactly overdramatic to call this situation a trade war or, at the very least, something that resembles one. Unfortunately, it’s the average consumer, particularly tech enthusiasts, who will likely bear the brunt. We can only hope things will turn around, but the immediate outlook suggests we’re in for a bumpy ride.
