Trump policy threatens to make laptops 68% more expensive for Americans
A new policy from Trump threatens to make laptops 68% more expensive for Americans.
The new administration will enter the White House later this month but what policies will they be implementing?
According to experts, the president’s new tariffs could mean higher prices for certain products.
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A study conducted by the Consumer Technology Association (CTA) has revealed that Trump’s tough import tariffs could make some electronics a lot more expensive if they are enforced.
This is based on two proposals that have been suggested by the president-elect.
Trump has floated the idea of either putting a global 10% import tariff and an additional 60% on China or a 20% global tariff and an additional 100% on China.
But these tariffs could mean that items such as laptops and tablets could see a price spike in the US.
There are ten product categories that could be affected including laptops, smartphones, video game consoles, desktop computers, monitors, connected devices, computer accessories, TVs, speakers, headphones and lithium-ion batteries.
In the report by the CTA, it said: “Even accounting for alternative sources of supply and potential new US production, the proposed tariffs on these ten products alone would reduce American consumers’ spending power by $90 billion to $143 billion a year.
“Price increases would be substantial if suppliers pass all the higher costs through to final consumers. Buyers of laptops, tablets and smartphones would feel the greatest impact.”
Under the harshest tariff, the cost of laptops and tablets could surge by a whopping 68%.
Trump has said that by putting huge tariffs on places abroad like China will force factories back to the US.
However, the CTA report has its doubts that this tactic will work and instead they predict that firms will move their manufacturing away from China and to a cheaper country.
In a statement on their website, CEO of CTA, Gary Shapiro, said: “The tech sector is America’s economic engine, driving global innovation and job creation.
“Our positive forecast reflects the industry’s strength, but proposed tariffs threaten the deflationary power of tech in the global economy. Tariffs are a tax on American businesses and consumers. We urge the incoming administration and Congress to prioritize an Innovation Agenda that fosters growth.”
Ed Brzytwa, who is the CTA vice president, said: “The incoming administration must address how tariffs impact American businesses and consumers.
“Retaliation from our trading partners raises costs, disrupts supply chains, and hurts the competitiveness of U.S. industries. U.S. trade policy should protect consumers and help American businesses succeed globally.”