Tech Companies Prepare for Artificial Intelligence Products Amid Uncertainty Over Tariffs
Tech companies big and small are unveiling their latest artificial intelligence-infused products at the annual Consumer Technology Association (CTA) electronics show in Las Vegas, but concerns over tariffs could disrupt the global supply chain.
The head of the CTA warns that Trump’s plan to impose tariffs on imported goods, including those from China, could result in price increases for consumers, potentially fueling inflation and hindering innovation. Economists argue that companies may pass on the higher costs to buyers, driving up prices.
One example of a tech company exhibiting at the show is Yarbo, which manufactures a lawn-care robot in China. While the company could shift its supply chain to minimize the impact of tariffs, the uncertainty has created uncertainty and questions for Yarbo’s co-founder Kenneth Kohlmann.
Other small businesses have already been impacted by Trump’s previous tariff initiatives and say their ability to adapt to further tariffs is limited or non-existent. The CTA estimates that Trump’s proposed tariffs could increase average prices for laptops by $357, smartphones by $213, and televisions by $48.
Gary Shapiro, CEO of the CTA, predicts that if Trump implements his proposed tariffs, the outcome would be similar to a “Great Depression.” The CTA has urged President-elect Biden to abandon the proposed tariffs and has welcomed the shift in leadership at the Federal Trade Commission, with Lina Khan at the helm.
Meanwhile, Trump has suggested that his proposed tariffs could be used as a negotiating tool to secure other countries’ help restricting immigration or policing fentanyl trafficking, leaving some companies like Yarbo unsure about how to prepare. As the president-elect continues to make announcements, the uncertainty around tariffs has many tech companies concerned about the future of innovation in the industry.
