Looking to buy a new phone? This is how Trump’s tariffs may affect the price
The new tariffs introduced by President Donald Trump on Canada, Mexico and China could push up the cost of cell phones and other consumer goods.
China and Canada have retaliated after President Donald Trump officially introduced new tariffs on foreign imports, likely pushing up prices for consumers in the United States.
Earlier this week Trump enforced a 25% levy on most goods coming from Canada and Mexico, with an increase on Chinese products from 10% to 20%. Both China and Canada have issued their own tariffs as a result, with Canadian Prime Minister Justin Trudeau saying: “Our tariffs will remain in place until the U.S. trade action is withdrawn.”
Shoppers in the US may not immediately feel the effects of the tariffs - although the stock market did slump on Wednesday - but there could be price rises coming for imported goods. As tariffs make it more expensive for companies to do business in the US, those costs will undoubtedly be passed on to the consumer.
Will the Trump tariffs affect cell phone prices?
Analysis from the Consumer Technology Association (CTA) has found that consumers goods will likely become more expensive if the tariffs remain in place. They cite smartphones, laptop, tablet and video game consoles as products that will likely be affected.
Best Buy CEO Corie Barry has previously explained that tariffs on China, Canada and Mexico “will be shared by our customers,” adding that “there’s very little in consumer electronics space that is not imported.”
As is the case with inflation, the increased costs will not immediately be seen by consumers but the effects of Trump’s move will be felt across the economy more gradually. Explaining his decision during a White House event on Tuesday, Trump insisted that foreign companies operating in the US would bare the brunt.
“They can’t come in and steal our money and steal our jobs and take our factories and take our businesses and expect not to be punished — and they’re being punished by tariffs," he claimed.
Trump described tariffs as “a very powerful weapon that politicians haven’t used because they were either dishonest, stupid or paid off in some other form.”
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