President Donald Trump is adding hefty tariffs on products imported from China, Mexico and Canada. Based on recent reports, this could cause prices to rise for certain electronics. If companies pay more to import goods, the reasoning goes that this extra cost will be passed onto the consumer.
How much will prices rise? That remains to be seen as things stabilize after the significant changes. While we can’t know for sure, we can speculate based on historical evidence and reports from experts circulating through the internet.
Prices could be better or worse than these educated guesses, but they should at least give you an idea of what to expect.
What percents are Trump’s new tariffs?
On Saturday, President Trump announced 25% duties on Canada and Mexico and 10% on China. For Canada, crucial energy imports will be lower with 10% duties.
“Today, I have implemented a 25% Tariff on Imports from Mexico and Canada (10% on Canadian Energy), and a 10% additional Tariff on China. This was done through the International Emergency Economic Powers Act (IEEPA) because of the major threat of illegal aliens and deadly drugs killing our Citizens, including fentanyl,” Trump said on Truth Social.
Trump’s Executive Order states these extra duties will be enforced starting Tuesday, February 4 and is enacted through the 1977 International Emergency Economic Powers Act (IEEPA).
Trump explained his motivation, “We need to protect Americans, and it is my duty as President to ensure the safety of all.”
The United States has confirmed that it intends to impose 25% tariffs on most Canadian goods, with 10% tariffs on energy, starting February 4. I’ve met with the Premiers and our Cabinet today, and I’ll be speaking with President Sheinbaum of Mexico shortly. We did…February 2, 2025
As you might expect, the three affected countries responded and are set to roll out their own tariffs across various goods. Canada will place 25% counter-tariffs on CAD$155 billion (USD$107 billion) worth of American-made products starting the same day as Trump’s go into effect.
How could Trump’s tariffs change prices for tech?
Believe it or not, almost every tech device has imported parts or is entirely built outside the U.S. That means prices may have to rise to accommodate these new duties.
In the big picture, Yale’s Budget Lab has estimated that the new tariffs could decrease the annual purchasing power of a middle-class family by about $1,250.
For tech, the CTA says the prices for laptops and tablets could increase 46 – 68%, while video game consoles could jump by as much as 40 – 58%. Smartphone prices are predicted to jump as much as 26 – 37%.
However, this data is based on estimated tariff percentages (including a 60 – 100% tax on goods from China), and the final numbers in Trump’s executive order were lower, with China getting a 10% additional tariff on top of those already implemented 25 – 100% tariff on goods already imposed on China, as laid out in this article from USTR document.
This could be the beginning, though, as Trump’s order also includes provisions allowing the tariffs to go even higher if the duties cause a trade war.
