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.