Tariff War can increase the price of technological products by up to 70%

Announced in April this year by US President Donald Trump, the new import tariffs in the country may represent a tough blow to the global technology market. According to Trade Partnership Worldwide (TPW) and the consumer technology association (CTA), they can raise the price of electronic devices by up to 70%.

A report prepared by TPW states that the main affected will be the table console, which are predominantly manufactured in China. With the rates of more than 100% disclosed by Trump, they can have their total values ​​high by 69.4%, with an average of $ 428 more expensive for consumers.

Tablets and laptops should have prices increasing by 34%, 31.8%monitors, 30.8%smartphones and computer accessories at 24.8%. Although Trump has paralyzed the application of tariffs for a period of 90 days, He said the 10% base rate will still remain. In addition, elements such as steel and aluminum entering the country should remain taxed by 25%.

Tariffs make evident the complexity of the industry

TPW estimates take into account what might happen to the technology market, after 90 days, the tariffs remain the same originally announced by Trump. The main affected will be goods that depend on China, which will be taxed in up to 145% of its original value.

The analysis also considered items such as televisions, headphones, speakers, ion-lytion batteries and desktops sold closedly. However, individual parts for computers, such as video cards, memories and CPUS, were not considered. Nevertheless, the result should be the same in general: more expensive consumer prices, loss of purchasing power and cost increases for trade.

While Trump says he is using tariffs to stimulate product production in the United States, he does not seem to consider that this is an expensive and complex process. Even if a company like Nintendo, for example, decides to produce switch 2, She will have to invest billions in factories that will only be ready in a few years.

And even if this happens, the country will still suffer from production chain problems – which have been complex and took decades to establish itself with countries like China and Taiwan in central positions. Thus, console pieces would still have to be imported from abroad and, thanks to tariffs, it would remain even more expensive even if it was technically produced by the US.

Source: Tom’s Hardware