The organization that runs CES is urging the incoming Trump administration to drop its plan to tariff foreign goods, warning that it risks driving down demand for PCs, smartphones, and consoles by more than 50%.

The Consumer Technology Association (CTA), a trade group representing hundreds of electronics vendors, published new estimates on how Trump’s proposed tariffs on foreign imports, especially Chinese-assembled products, threaten to depress consumer demand.

The group’s study warns that laptop and tablet prices could increase by 46% to 68% if Trump implements 60% to 100% tariffs on Chinese imports.

Meanwhile, prices for video game consoles — another major item assembled in China— risk inflating by 40% to 58%. Smartphones would experience a smaller increase from 26% to 37%.

The resulting cost increases will also cause demand for electronics to plummet. “Consumers will decrease their purchases of laptops and tablets by 54%-66%, smartphones by 44%-54%, and video game consoles by 57%-68%,” the CTA estimates.

Trump continues to threaten Canada and Mexico —another major producer of electronics— with tariffs. According to CNN, Trump is also considering declaring a national economic emergency to justify imposing universal tariffs on foreign goods legally.

Trump is using the tariff threats to pressure US allies and China into meeting his demands on trade and immigration. However, the CTA fears the gamble will backfire. “Whether they are imposed on our adversaries or allies, all these tariffs are taxes that Americans pay, and we must call them as such,” the group wrote, later adding: “The 60-100% flat tariffs on all imports from China will largely drive production to other countries, not to the United States.”

Still, it’s possible some electronic vendors will try to absorb the tariffs rather than pass on the full costs to consumers. Another technology trade group, the IPC, conducted a survey and found that 38% of its members "plan to pass the full cost increase of any tariffs on to their customers," and 19% plan on passing only a portion of the cost to consumers. The remaining 38% say they’re unsure how they’ll approach the potential tariff increase.

"A majority (68%) of electronics manufacturers and suppliers express at least a moderate concern about the impact of potential tariffs on the electronics industry," the IPC added.d

During a Tuesday press conference, Trump said the goal of the tariffs is to encourage US-based production. "We'll impose new tariffs so that the products on our stores will once again be stamped with those beautiful words, 'Made in the USA,'" he said.

By: DocMemory
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