CTA Study Quantifies Tariffs Hit to Consumers’ Wallets
US-imposed tariffs on 10 key consumer technology product imports purchased onshore will reduce American consumers’ purchasing power by $123 billion, the Consumer Technology Association said in a new report.
The report, conducted by the Trade Partnership Worldwide, looked at the potential impact of President Trump’s campaign promises regarding tariffs. The effect, the firm found, is significant price increases for US consumers.
For example, the average retail price increases include:
- Smartphones – 31%
- Monitors – 32%
- Laptops and tablets – 34%
- Video game consoles – 69%.
The new report models a scenario in which:
- The 90-day pause on reciprocal tariff ends, and reciprocal rates – ranging from 11 to 46% – are reinstated on all eligible products.
- 25% tariffs – but no reciprocal rates – are imposed on the products subject to the Section 232 investigation launched in the April 15 order.
- The 20% IEEPA tariff on China remains in place and stacks on top of the 125% on China, when applicable, or the 25% Section 232 tariff, leading to an effective 145% or 45% tariff on imports from China.
- The 25% IEEPA tariffs on products that do not claim duty-free treatment under the US-Mexico-Canada Agreement remain in place and stack on the Section 25% tariff, leading to an effective 50% tariff on non-USMCA claiming products subject to the investigation.
- The Section 301 tariff increase on lithium-ion batteries from 7.5% to 25%, announced by the Biden administration, takes effect as scheduled on Jan. 1, 2026.
The model also assumed no further retaliation by trading partners.
Hot Takes
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