Are U.S. import tariffs pushing up PC prices?

donald trump american import tariffs

Donald Trump’s announced import tariffs threaten to make personal computers a lot more expensive. This dampens growth expectations for what should be a banner year.

2024 was a year of recovery for the PC industry. After two more difficult years, the PC industry grew seven percent. Canalys ‘ figures are based on the U.S. market, but on a global scale, the PC industry also had a good year. Expectations for 2025 are moderately positive with a projected growth rate of two percent.

Made in China

Canalys expects upcoming U.S. import tariffs to impact the PC market. With Donald Trump now sworn in as president, mainly goods from China will face hefty import tariffs. A first 10 percent tax will most likely go into effect as early as Feb. 1. During his election campaign, Trump threatened taxes of up to 60 percent. That’s tough luck for PC manufacturers who produce laptop components in China.

Manufacturers are moving production to other countries, but that didn’t happen overnight. The president is also threatening to impose high taxes on goods imported from other countries, such as Canada, Mexico and recently Colombia. Donald Trump wants to encourage domestic production by “punishing” companies that produce abroad with taxes. The import tariffs also serve as a threat to countries that don’t do what Trump wants.

Putting a spanner in the works

Finally, end users will foot the bill. The Consumer Technology Association estimates that PC prices will rise sharply by 2025, up to 46 percent. Smartphones will also become up to 25 percent more expensive. This will make individuals and businesses think twice about whether they want to invest in new devices.

2025, however, announced itself as a peak year for the PC market. After a cautious introduction, manufacturers want to push full throttle with new “AI PCs. But it is mainly the imminent end of the still very popular Windows 10 that will make many users decide to buy a new device. Will Donald Trump throw a spanner in the works?

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Moderate tone

Donald Trump has moderated his tone toward China since being sworn in, though. In a recent interview with Republican-leaning Fox News, Trump still called Xi Jinping “his friend” and said he would “rather not impose” import tariffs. Whether it is a sincere attempt at rapprochement or not, it still appears that the tariffs will be implemented. How that affects consumer electronics prices will have to be seen.


This article originally appeared on Jan. 3 and was updated with the latest information.