Kevin Carter/Getty Images
Consumer spending on tech could hit a record high of $537 billion this year, according to a new report from the Consumer Technology Association.
But those projected retail revenues might not be met if President-elect Donald Trump follows through on promises of sweeping tariffs.
The CTA's report found the proposed tariffs could lead to tens of billions of losses in revenue, if not more. Trump has said he would institute a blanket tariff of 10 to 20% on all imports and an additional 60% or more tariff on goods from China.
"Such sweeping tariffs could have serious consequences on the market for consumer technology, greatly reducing demand for devices that are heavily reliant on Chinese manufacturing," the report said. "Additional tariff costs on tech products could also reduce consumer purchasing power by $90 billion, to $143 billion."
The CTA's current consumer tech spending projection would amount to an increase of 3.2% compared to 2024.
The CTA has previously found that under Trump's tariffs the average price of laptops and tablets could increase by 45% and of smartphones by 25%. Televisions could see a 9% price increase while video games and consoles could cost almost $250 more than their current sale price.
Brian Comiskey, a futurist at the CTA, said at CES 2025 in Las Vegas this week that without the tariffs the industry was headed for a "super cycle" as consumers seek to upgrade their tech hardware to access the latest AI offerings, TechCrunch reported.
Many economists have previously said that Trump's proposed tariffs would raise prices for Americans, and at a time when many are still feeling the impacts of inflation.
It's still unclear how the incoming administration plans to implement tariffs. After a report from The Washington Post said Trump aides were discussing ways to roll out less wide-ranging tariffs, the president-elect denied it.
Trump wrote on Truth Social that the story "incorrectly states that my tariff policy will be pared back. That is wrong."
