From disrupting global semiconductor supply chain to inflating iPhone prices, what can Donald Trump’s proposed tariff raise on Chinese imports can cause?
Donald Trump, the President-elect of the United States, has proposed major tariff hikes on Chinese goods and imports from other U.S. trade partners, potentially increasing prices on various products, including electronics.
The proposed tariffs could reach as high as 100%, which economists warn will impact US consumers’ wallets.
Trump’s tariff proposal could raise the prices of smartphones like iPhones, laptops, tablets, and video game consoles, many of which are imported from China. Under the proposed plan, China would face the highest tariffs.
The Consumer Technology Association of the US estimates that laptop and tablet prices could increase by 46%, while smartphones might cost up to 26% more. Imports account for around 90% of video and audio electronics sold in the States.
According to MarketWatch, the semiconductor industry may face significant challenges next year if Trump acts on specific campaign promises, which include the tariffs. The US Chips Act may also face delays or changes under his administration. Increased tariffs and export restrictions could lead to inflation and disrupt global semiconductor supply chains.
Apart from electronics, Trump has suggested imposing tariffs ranging from 60% to 100% on Chinese goods and a 10% to 20% tax on products from other US trading partners. This proposal could lead to significant price increases on various consumer goods.
Experts anticipate that these tariffs will drive up prices on electronics, clothing, and toys, potentially adding an extra $2600 in annual costs for the average American household.
