The Consumer Technology Association, CTA, has warned that tariffs proposed by President-elect Donald Trump could significantly reduce Americans’ ability to purchase technology products.
It said that this would potentially cut consumer purchasing power by up to 143 billion dollars.
According to a report released by CTA, laptop and tablet purchases could plummet by as much as 68 per cent, while gaming console consumption might drop by 58 per cent.
Smartphone purchases, a cornerstone of modern consumer technology, could see a decline of up to 37 per cent.
“We have been watching closely in our forecast research, looking at the tech products consumers love and rely upon, including smartphones and laptops.
“Understanding that they may be threatened by President-elect Trump’s tariff proposals,’’ said Brian Comiskey, CTA’s senior director of innovation and trends.
The report predicted that the U.S. consumer technology industry would grow 3.2 per cent to 537 billion dollars in 2025.
“Our positive forecast reflects the industry’s strength, but proposed tariffs threaten the deflationary power of tech in the global economy.
“Tariffs are a tax on American businesses and consumers.
“We urge the incoming administration and Congress to prioritize an Innovation Agenda that fosters growth,’’ CTA CEO Gary Shapiro said in a statement.
Ed Brzytwa, CTA’s vice president of trade, highlighted additional concerns about potential international repercussions.
“Retaliation from our trading partners raises costs, disrupts supply chains, and hurts the competitiveness of U.S. industries,’’ he said, urging the incoming administration to carefully consider these impacts when formulating trade policy, NAN reports.