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- Consumer electronics like smartphones and computers could become more expensive when Trump’s new 10% tariff on imports from China announced on August 1 are implemented on September 1.
- The White House believes that China would bear the burden of the tariffs, not the US consumer.
- However, some evidence contradicts the White House’s prediction: Sony said it may be forced to raise the price of its PlayStation consoles as a result of the tariffs. And computer part manufacturer NZXT has had to raise its prices as a result of Trump’s previous 25% tariffs.
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Popular electronics like smartphones and computers could become more expensive for US consumers starting on September 1.
It could mean that a $1,000 smartphone like Apple’s iPhone XS could cost closer to $1,100.
On August 1, President Donald Trump announced that the US will charge "a small additional Tariff of 10% on the remaining 300 Billion Dollars of goods and products coming from China into our Country," which includes fully assembled consumer electronics.
As far as electronics go, the previous 25% tariffs, which started off at 10%, imposed on China by the Trump administration have only included electronic components rather than fully assembled products.
Speaking with NPR, White House trade adviser Peter Navarro said US consumers wouldn’t be the ones to pay more as a result of the new tariffs. Instead, Navarro said that "consumers don’t have to worry," as he believes that China will "bear the burden of these tariffs," citing what China has supposedly done with the previous 25% tariffs imposed in May.
There is some evidence that suggests otherwise, however. On Tuesday, Sony said one of its options in response to potentially raised tariffs would include raising the prices of its PlayStation consoles for US customers if tariffs were imposed, according to the Wall Street Journal.
Additionally, computer-parts manufacturer NZXT had to raise its prices 10% as a result of Trump’s previous tariffs, the company told PCMag.
Tech companies have warned that tariffs could bring higher costs to US consumers and lead to lost jobs in the US.
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Source: Business Insider – feedback@businessinsider.com (Antonio Villas-Boas)