Trump's tariffs could spike prices of tech gadgets

If tariffs on Chinese goods are enforced, smartphones, tablets, and gaming consoles may cost up to 50% more.

With slightly less than two months left until Donald Trump’s presidency, economists are becoming concerned about the impact that Trump's proposed tariffs will have on US consumers.

During his election campaign, the re-elected President promised to impose 60% tariffs on Chinese goods and 25% on Mexico and Canada.

On his social network Truth on Tuesday, Trump announced another 10% additional tariff “above all additional tariffs,” citing the illegal smuggling of fentanyl.

If such tariffs were imposed, they would significantly impact US companies, forcing them to raise prices.

The National Retail Federation estimates that over six product categories (Apparel, Toys, Furniture, Household Appliances, Footwear, and Travel Goods) American consumers could lose from $46 billion to $78 billion in spending power each year.

While tech products aren’t included as a separate category, the tariffs would definitely impact US tech companies as many of them, including Apple, manufacture their products in China.

According to economists' calculations, a $1000 iPhone, for example, could cost $300 more.

Another report published by the Consumer Technology Association forecasts that if 60% tariffs are imposed, laptop and tablet prices could increase by 46%, video game consoles by 40%, and smartphones by 26%.