The Impact of Tariffs on Tech Products Under a Trump White House
As the Trump administration prepares to take office, many Americans are wondering how the cost of their tech gadgets will be affected. With tariffs on imports being a key part of Trump’s trade policy, the cost of computers, cell phones, TVs, and other consumer goods could increase. CNN Business economics writer Elisabeth Buchwald joined Terms of Service to discuss the potential impact of tariffs on tech products.
Buchwald explained that tariffs are a tax on imports, and while consumers may not see the tax on their receipts, it ultimately gets passed down to them in the form of higher prices. The tariffs could affect a wide range of products, including e-bikes, computers, appliances, and even small items like hairdryers and toasters.
Trump has proposed tariffs of 60% on all imports from China, 25% on imports from Canada and Mexico, and 10% on all imports worldwide. While the exact impact of these tariffs is unclear, Buchwald warned that consumers may need to start thinking strategically about which products to buy before prices go up.
Buchwald suggested that consumers consider buying products that are heavily produced outside of the US, such as e-bikes and computers, if they are on the market. She also warned that even small items like toasters and hairdryers could be affected.
However, Buchwald noted that it may take some time for the tariffs to take effect and for prices to rise. She recommended paying attention to what companies are saying on earnings calls to get a sense of how they are preparing for the tariffs.
In conclusion, the potential impact of tariffs on tech products under a Trump White House is significant. Consumers may need to start thinking strategically about which products to buy and when to buy them to avoid higher prices.
