In June, sixteen Nobel Prize-winning economists signed a letter expressing concern that Donald Trump’s proposals could reignite inflation, which is currently nearing the Federal Reserve’s 2 percent.
The big picture: If Trump were to implement his proposed tariffs upon becoming president again, it would significantly reshape the landscape of consumer electronics in the US. Economic policy discussions can often seem abstract, but it’s important to understand the real-world consequences these tariffs could bring.
In June, sixteen Nobel Prize-winning economists signed a letter expressing concern that Donald Trump’s proposals could reignite inflation, which is currently nearing the Federal Reserve’s 2 percent target after surging to 9.1 percent in 2022.
They were primarily referring to his plans to impose tariffs of 10 to 20 percent on imported goods, along with a special 60 percent tariff on imports from China, aimed at encouraging the return of manufacturing to the US.
It is unclear whether manufacturers would pull up stakes and move back to the US in response, but what is certain is that these tariffs will lead to higher prices on imports, and that includes electronic products such as laptops, smartphones, monitors, desktop computers and TVs, most of which are primarily manufactured in China.
According to a recent Consumer Technology Association (CTA) report, a 10 percent global tariff combined with a 60 percent China-specific tariff could increase laptop prices by 45 percent.
