Electronics industry braces for even more tariffs
The Trump administration’s latest salvo in the U.S.-China trade war went into effect on Sept. 8, and the electronics industry, which has lost billions of dollars in the ongoing dispute, is about to take another hit
The Trump administration’s latest salvo in the U.S.-China trade war went into effect on Sept. 8, and the electronics industry, which has lost billions of dollars in the ongoing dispute, is about to take another hit.
According to an official announcement in the Federal Register, the rate of additional duties already in place on billions of dollars of imports from China have increased 5%—from 10 to 15%—and the electronics industry is likely to feel the sting.
Many large American electronics companies, like Apple, complete the last leg of the assembly process in China, making them prime targets for the tariffs. The Consumer Tech Association has said that the electronics industry has had to pay out $10 billion in extra tariffs on parts and components since July 2018,
The imminent increase is being levied at more finished goods, such as fitness trackers, computers, smartwatches, lithium batteries, and cameras. J.P. Morgan analysts have said that Apple, which has kept its prices mostly intact, is likely to absorb the brunt of the tariffs’ impacts, rather than jack up prices. Consumer costs could tick up, but that is not likely to happen until the holidays, according to CTA spokesperson Bronwyn Flores in the CNBC report. “You might start to see it in November for Black Friday, so if you want a new TV for the Super Bowl, you might want get it soon,” Flores said.
The next round of tariffs—should the U.S.-China scuffle continue—is scheduled for December, and will include smartphones, video game consoles, laptops, and tablets.