Tariffs Could Have $3.2B Consumer Electronics Impact

The United States’ trade war with China could have costly impacts on consumers purchasing electronics, according to the Consumer Technology Association, to the tune of $1.6 billion to $3.2 billion in 2019.

The Trump Administration placed tariffs on $34 billion worth of Chinese goods last month, and an additional $16 billion in tariffs will take effect this week, reports CNBC, which says an additional $500 billion in tariffs – including those on imported tech products and parts – are being considered.

Since parts to many Americans’ consumer electronics are manufactured in China, the cost of purchasing those goods will be astronomically higher, the trade organization said, noting that the 10 to 25 percent tariffs would have “a substantial negative impact.”

Products such as modems, smart speakers, smartwatches, smart appliances, wireless headphones and fitness trackers will face 3.2- to 6.2-percent price increases. Supporters of the tariffs say the strong U.S. economy and low unemployment rate means consumers are poised to withstand the increases, while others say the tariffs could create lower retail sales and result in job cuts.