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Report: China tariffs will see laptop, phone, and console prices rise in US

By midian182 · 25 replies
Jun 19, 2019
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  1. The prediction came from a study commissioned by the Consumer Technology Association (CTA) and carried out by Trade Partnership Worldwide. It estimates the impact of Donald Trump’s proposed tariffs of up to 25 percent on an extra $300 billion in goods imported from China.

    The report states that the cost of cell phones imported from China would rise 22 percent, while overall US prices for phones in general would go up by 14 percent, or nearly $70. This would lead to consumers reducing overall purchases by 28 percent. Two winners to come from the proposed tariffs would be Korea and Vietnam, whose annual export revenues would grow by about $1.8 billion and $1.2 billion.

    Laptops would be hit even harder, with prices increasing $120 from the national average of $622. This 19 percent rise would see consumers reduce spending on laptops and tablets by 35 percent. It’s noted that as China accounts for 90 percent of total laptop/tablet imports, moving such a large volume of supply to another country isn’t possible, leading to US price increases. The report adds that China’s output is 38 times greater than the next largest supplier, Vietnam.

    In other areas, video game console imported from China would rise by 21 percent, while toy drones would jump 20 percent.

    Permalink to story.

     
  2. QuantumPhysics

    QuantumPhysics TS Evangelist Posts: 1,240   +901

    Trump's logic is understandable because it's basic infantile logic - even if it's misguided and has unforseen consequences.

    His premise is simply that if he imposes tariffs that prices will rise and it will force more competitioon with China, ie. more businesses will prefer to come to America, set up factories in America and produce their product here - thereby giving more jobs to Americans...and that American businesses will jump up to fill niches that Chinese products used to fill - but are now shunned do to their newfound expensiveness.

    Some people believe that a weaker US dollar is the answer.

    Japan brings more Toyota and Honda factories to Texas and Mississippi for example. BMW produces SUV here rather than there.

    The initial pain will be felt - yes - but as far as he's concerned, you should just weather the storm and spend less.

    The problem is that there's so many products being made in China that the storm will be very painful and last for a long period of time. Everything from clothes to plastic garbage bags to brooms to basic home tools...

    China specifically keeps the Yuan artificially low to make exactly this happen for them. Businesses come to China to produce their product using their low costs and cheap labor and then sell it at profit. The benefit of this is that I can live a lifestyle now that I never could have afforded 20 years ago.

    20 years ago, a NEC 63" gas plasma TV was $15,000.

    Now I can walk into Walmart and walk out with a 70" 4K TV for $800 or less.

    You mention "drones" prices jumping 20%.

    When I was a kid, I never imagined I'd be able to afford an RC helicopter. They were Thousands of dollars and gas powered. I never imagined electric motors would make them cheaper than $50 and functional enough to have fun.

    America has been, in effect, trading its inflation (useless US dollars) to China in exchange for manufactured goods. But eventually those piles of US dollars come back in the form of higher cost of living: ie. you not being able to outbid Chinese investors for property and entire blocks of houses or buildings getting purchased from under you.

    Just ask NYC and California.
     
    Last edited: Jun 19, 2019
  3. Dosahka

    Dosahka TS Addict Posts: 149   +59

    I would like to point out that if and when a Chinese company decides to build a factory in the US, to get rid of these import taxes, the prices will go up anyway, because there is no way that the cheap Chinese labour salary can be paid for an US citizen. Let alone work 10 hours a day, 6 days a week, this will be more like 8 hours a day, 5 days a week, which further reduce the output of said factory.
     
    TempleOrion, Mixkhata and Mr Majestyk like this.
  4. Footlong

    Footlong TS Addict Posts: 143   +73

    It is not Trump's logic. This is called protectionism. It is the reverse of what the US has been praticing since World War II. It is the opposite of what Republican's Jesus Ronald Reagan economic policy was. It is also the opposite of what the orthodox economic policies stands for (liberal, the real one not the Fox News).
    Also keep in mind that China can retaliate. Right now the American tax payer is subsidizing farmers in 16 billions every year and this can lead to retaliation from other countries too since the US pushes for countries like Brazil, Mexico and Argentina not to do so.
     
    TempleOrion, PEnnn and Uncle Al like this.
  5. amstech

    amstech IT Overlord Posts: 2,238   +1,438

    You don't understand what is going on.
    Quantum explained it pretty clearly.

    That's it in a nutshell.
     
    QuantumPhysics likes this.
  6. Uncle Al

    Uncle Al TS Evangelist Posts: 5,390   +3,779

    Soooooo ..... how do your great theory's get around the 3rd and 4th party buying from them, then reselling to the US? You just need to face the fact that no matter the long or short run, tariffs do not work and only add complexity to the system, which results in the buyer paying those larger costs. It's certainly not rocket science, you just have to follow the money and remember that there are more than a few players in this game.
     
    TempleOrion and mbrowne5061 like this.
  7. PEnnn

    PEnnn TS Enthusiast Posts: 85   +83

    The clueless man-child in the White House really thinks China is paying for the tariffs but not the US consumer. US companies paying more will pass the higher prices to the consumers, period. When you are out if ideas or have none, tariffs sound great in those pathetic tweets.

    Just like when he claimed Mexico will pay for the wall, while insisting the US tax payer provide the billions. but hey, the gullible electorate was never known for being smart. And the farmers got 16 billion in corporate welfare because those policies are working great!!
     
  8. Capaill

    Capaill TS Evangelist Posts: 894   +497

    That's happening in the US too? I thought it was just Ireland where the Chinese are buying every property in sight and then jacking up the rent.
     
    QuantumPhysics likes this.
  9. Kinemon

    Kinemon TS Rookie

    Trump is very simple minded. He thinks everything in life is a zero sum game. People who know him well have said this about him, that he thinks there is always a winner and a loser and he wants to be the winner. He see's the 600 billion trade deficit and thinks we are the loser.

    The world is not the simple though.
     
    TempleOrion likes this.
  10. QuantumPhysics

    QuantumPhysics TS Evangelist Posts: 1,240   +901


    It is happening in the US daily.

    Not just Chinese...Arab oil money as well.

    You won’t recognize it until you see a large portion of Generation Z unable to afford a mortgage-“ and they end up renting from Asians.

    Renters on land their forefathers conquered.
     
  11. Bluescreendeath

    Bluescreendeath TS Maniac Posts: 139   +216

    In the US, the rich overseas Chinese and Arabs who are buying up properties are generally buying multimillion dollar mansions and expensive large homes. They're not the types of homes that the average person would live in or could afford.

    A large portion of Generation Z (and X) can't afford a mortgage anyways due to student loan debt and other issues that have nothing to do with overseas property buyers.

    Assuming it is happening, Poetic justice then? It comes full circle.
    Also, I'm pretty sure most Americans today aren't descended from or so far removed from conquerors that that description makes no sense.
     
    Last edited: Jun 19, 2019
    Jules Mark, TempleOrion and Mixkhata like this.
  12. Vrmithrax

    Vrmithrax TechSpot Paladin Posts: 1,467   +500

    What I find interesting about these tariffs is what nobody seems to ever touch on - where does the tariff money go?

    Follow the trail and it has an interesting path - it's essentially a blanket tax. Trump effectively implemented a selective national sales tax on the entire country in the name of "fair trade" policies, avoiding much of the PR stigma of actually raising taxes. It's not a huge amount, but it's basically what has happened - tariff money goes right into the government coffers.
     
  13. treetops

    treetops TS Evangelist Posts: 2,565   +551

    http://www.cc.com/video-clips/24ekd8/the-daily-show-with-jon-stewart-fear-factory
    Americans won't work for .31 cents an hour. 35 hour shifts.(2012) Bringing those jobs back to America is just something politicians say to distract people who don't think about simple math. Like when you tell kids about Santa Claus. How does he go around the world over night to every house? Magic.
     
    Last edited: Jun 19, 2019
    TempleOrion and poohbear like this.
  14. Bluescreendeath

    Bluescreendeath TS Maniac Posts: 139   +216

    Some folks are missing the big picture - where the factories are located isn't even the real issue here because factories will just move to Vietnam or any other low wage area rather than back to the US. The real issue is the 500 billion to 1 trillion dollars worth of intellectual property and services that China steals every year. That is far more important as the US is a post-industrial economy that doesn't rely on manufacturing anymore, but relies on Intellectual property/services/tech innovation.

    Whoever is the brains behind the trade policy (probably not Trump) is probably pushing for IP reforms rather than balancing out the trade deficit if the recent news reports are correct.
     
    Last edited: Jun 19, 2019
    poohbear likes this.
  15. p51d007

    p51d007 TS Evangelist Posts: 1,966   +1,230

    China is the "big player" now. When I was a kid in the 60's, people complained about "everything being made in Japan...you can't pick up something that isn't made in Japan". Now, you hear the same complaints about China. If the "bunch" that is in charge of companies (ie: CEO's/stockholders) weren't so greedy, wanting to get the stock price higher and higher, things could still be made here per se. But, they are after the CHEAPEST labor cost. Right now, that is China, and, most likely will continue, because most people in China have NO RIGHTS. If the "comrade chairman" says you are going to work here or there, you DO IT...or else.
    In Japan, people have more freedom, so, they demanded over the decades, more right/wages, pushing things to China. Vietnam is pretty much like China, that their citizens don't really have any rights, which makes them a cheap labor market.
    Same for all the illegal aliens flooding into the USA. Both political parties want them here.
    Republicans want them here, for their buddies in business, to help depress wages. Democrats, want them here so they can inflate the welfare rolls, and hopefully turn them into citizens that will vote for democrats.
    It's a lose-lose situation for American workers.
     
    BSim500, Morris Minor and treetops like this.
  16. QuantumPhysics

    QuantumPhysics TS Evangelist Posts: 1,240   +901


    Santa Clause stops time
     
    Dimitrios likes this.
  17. Dimitrios

    Dimitrios TS Guru Posts: 467   +350

    I didn't clean my chimney and Santa Clause left me a bill for $400 he said he had to hire 4 elv's to clean the chimney because I had too much Creosote build up! Trust me Santa Clause is real!
     
  18. poohbear

    poohbear TS Maniac Posts: 296   +210

    Does this affect prices in Canada in anyway? We still have the same duties on Chinese goods I imagine, nothing's changed for us Canucks up north ya? (we just won the NBA championship FYI :p)
     
    TempleOrion likes this.
  19. poohbear

    poohbear TS Maniac Posts: 296   +210

    I was following you until I here

    "democrats want them here so they can inflate welfare rolls, and hopefully turn them into citizens that will vote for democrats."

    So, they want to inflate welfare rolls why exactly? And then they just become democrats for the sake of inflating the welfare rolls for the next generation that wants them to vote for democrats so they can inflate the welfare rolls again etc etc? Sounds totally pointless.

    Wouldn't you say that the Democrats want immigrants here to help grow the economy? That they too see the benefit of more workers for the blue market?
     
    TempleOrion and treetops like this.
  20. QuantumPhysics

    QuantumPhysics TS Evangelist Posts: 1,240   +901


    Democrats want illegals here to vote and not to work - because they interfere with unions.

    Republicans want illegals here to work (cheap) and not to vote (democrat).

    That's the uneasy detante which ended once Trump got into office.
     
  21. Mr Majestyk

    Mr Majestyk TS Addict Posts: 153   +116

    So much breath wasted trying to understand Herr Dumbf’s imbecilic overtures. He’s irrational and his supporters are basically pre-school dropouts that just lap up his twitter crap as the gospel. Don’t waste your time, he’ll do what he wants no matter how *****ic and the gutless scums in the Republican party will sit by and try to get through their own hateful agenda while Herr Dumbf takes the limelight.

    Forget tariffs you should all be worrying about the war with Iran that Netanyahu is trying to force.
     
    Hasbean and TempleOrion like this.
  22. treetops

    treetops TS Evangelist Posts: 2,565   +551

    Illegals cannot vote legally. If they became legal then they could vote and get paid min wage+. I agree democratic politicians like getting the votes of people who support immigrants.. Legal immigrants might have once supported Republicans but disregard the pun, the new broad stroke anti immigration has probably alienated them.

    While some people want open borders. It's not feasible, there isn't enough food and shelter. In some areas drinking water. We could ramp up production of shelter and reroute food, import food if needed. Upgrade our waste disposal, sewer sytems etc. Pollution would ramp up. Who knows what we could actually support.

    Currently, legal immigration in the USA is like a ivy league school. You have to work your *** off to get in or be rich.
     
    Last edited: Jun 19, 2019
    TempleOrion likes this.
  23. DukeJukem

    DukeJukem TS Enthusiast Posts: 83   +46

    All these trump haters probably gonna vote for some ***** like dwayne the rock johnson as president in 2020
     
  24. poohbear

    poohbear TS Maniac Posts: 296   +210

    Kinda like how all the Obama haters voted for some ****** like Trump. lol oh the irony!
     
    TempleOrion likes this.
  25. DukeJukem

    DukeJukem TS Enthusiast Posts: 83   +46

    don't try to insult me from under your rock
     

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