Report warns laptop prices could increase 19% due to Trump's tariffs
There is still hope that the U.S. and China will reach an agreement and end the trade wars that have led to increased tariffs on both sides, plus the Huawei bans, but until then, OEMs and consumers may be faced with a new wave of price hikes. According to a new report commissioned by The Consumer Technology Association in the U.S., Trump’s latest increase on tariffs for goods imported from China could shortly determine a 19% price increase for electron devices such as laptop and tablets.
The report explains that the projected 19% price hikes would translate into about US$120 added to the current US$622 average retail laptop price and around US$50 added to the US$264 average retail tablet price. Consequently, this may mean that overall purchases for this type of devices could be reduced by 35%. The tariffs would also raise video game console prices by 19%, smartphone prices by 14% and toy drone prices by 15%.
U.S. corporations such as Apple and Microsoft are now considering to move production lines to other Asian countries around China, with Vietnam and South Korea being the most viable options, but this will still require steep investment costs and altered manufacturing timelines. Other countries that could be targeted for production shifts include Taiwan and Mexico.