Proposed Tariffs Could Skyrocket Laptop Prices by Over $350, Electronics Costs by Up to 40%

If Donald Trump wins the 2024 U.S. presidential election, American consumers may see significant price increases on electronics, including laptops, smartphones, and TVs. The GOP candidate and 45th president has pledged to implement sweeping tariffs of 10% to 20% on goods from all countries and a hefty 60% tariff on Chinese imports. These tariffs, paid initially by importers, inevitably result in higher prices for consumers.

Significant Impact on Laptop Prices

According to a report by the Consumer Technology Association (CTA) in collaboration with Trade Partnership Worldwide (TPW), these proposed tariffs could inflate laptop costs by as much as 45%. For a laptop priced at the average price point of $793, this would mean an increase of $357. Premium devices, such as ultrabooks or gaming laptops, could see even higher price jumps—up to $450 more for every $1,000 in price.

“Tariffs are regressive taxes that Americans pay. They’re not paid by a foreign government,” explained Ed Brzytwa, CTA’s Vice President of International Trade. “They harm poor people and people of little means more than they harm wealthy people.”

Across-the-Board Price Hikes

The effects of these tariffs wouldn’t stop at laptops. The CTA and TPW estimate dramatic price increases across various consumer electronics, including:

• Smartphones: Prices would rise by 25.8%.
• Monitors: Costs would jump 31.2%.
• Game Consoles: Prices would surge nearly 40%, as most are manufactured in China.
• Prebuilt Desktop PCs: These would see a smaller increase of 6%, as they are largely produced outside China.

In total, electronics prices could rise by $90 billion annually, significantly impacting U.S. consumers and potentially reducing sales volume.

Who Pays the Price?

Although tariffs are technically paid by importers, the burden almost always shifts to consumers. Brzytwa pointed out that nearly 100% of the costs from previous tariffs—implemented by both the Trump and Biden administrations on items like semiconductors, batteries, and electric vehicles—were passed on to the public.

These proposed tariffs highlight the trade-offs involved in reshaping U.S. trade policy, as they would effectively act as a regressive tax, disproportionately affecting lower-income households. With the holiday shopping season approaching, these potential price hikes could leave consumers rethinking their tech purchases.