US price increases on electronics likely to occur by summer amid volatile trade dynamics

New sweeping tariffs are being announced daily, either by the US in their effort to reduce trade deficits with trading partners or by other countries in retaliation, creating a highly dynamic atmosphere for industries relying on foreign-produced goods.

Electronic consumer experts are now ringing the alarm bells and warning of rising prices that should be expected in the future across the US market should the situation remain unchanged.

The tech magazine WIRED has published an article examining how the ongoing global trade war is likely to impact consumer electronics, especially following the imposition of a 104% tariff on Chinese imports into the US announced on April 9.

Speaking to Jason Miller, a supply chain management professor at Michigan State University, provides the publication with an example: a laptop that originally costs $400 to import might sell for $571 after a typical 30% retail markup. But with the new 104% tariff, the import cost jumps by $395 to $795. If retailers pass that cost to customers, the final price rises to $966—representing a 69% increase. At the same time, the retailer’s profit margin shrinks from 30% to 18%, meaning consumers pay more while retailers earn less.

He warns that this impact isn't limited to China, as countries like Vietnam, Taiwan, Japan, and India are all key players in electronics manufacturing and are similarly affected by broader US tariff policies. Still, Miller believes that while negotiations may ease tariffs for some nations, restrictions on Chinese electronics will likely remain in place, and this could significantly raise the prices of high-demand items such as smartphones, laptops, and gaming consoles.

Smartphones are the top US import from China, with laptops following closely. Miller points out that before January 2025, these electronics had zero tariffs, but that’s changed dramatically now.

Consumers may not feel the impact immediately, as retailers stocked up in anticipation, but the expert fears that should the current volatile situation persist, prices could begin climbing by June or July.

Beyond higher costs, shoppers may also notice a decline in product variety. Retailers are expected to focus on importing only their most profitable and popular models—meaning while major brands like Apple will continue offering flagship products, smaller companies may pull back from the US market altogether.

By Nazrin Sadigova