Publication date:
January 7, 2025
Record Consumer Tech Spending Projected, Barring Trump Tariffs
The Consumer Technology Association forecasts $537 billion in consumer tech spending for 2025, but warns proposed tariffs could significantly impact this projection.
Governance
The Consumer Technology Association (CTA) has projected a record $537 billion in consumer tech spending for 2025, marking a 3.2% increase from 2024. However, this optimistic forecast comes with a significant caveat: the potential implementation of sweeping tariffs proposed by President-elect Donald Trump.
The CTA's report highlights that Trump's proposed blanket tariff of 10-20% on all imports, coupled with an additional 60% or more on goods from China, could have severe repercussions for the consumer technology market. These tariffs could substantially reduce demand for devices heavily reliant on Chinese manufacturing and potentially decrease consumer purchasing power by $90 billion to $143 billion.
Brian Comiskey, a futurist at the CTA, noted at CES 2025 that without the tariffs, the industry was poised for a "super cycle" as consumers seek to upgrade their tech hardware to access the latest AI offerings. However, the implementation of tariffs could significantly alter this trajectory.
The potential impact of these tariffs on consumer tech prices is substantial. The CTA has previously estimated that under Trump's proposed tariffs, the average price of laptops and tablets could increase by 45%, smartphones by 25%, televisions by 9%, and video games and consoles by nearly $250 above their current sale prices.
Economists have warned that Trump's proposed tariffs would likely raise prices for American consumers, compounding the ongoing effects of inflation. The incoming administration's plans for implementing these tariffs remain unclear, with Trump denying reports of a less extensive tariff rollout.
The tech industry now faces a period of uncertainty as it awaits clarity on the new administration's trade policies. The potential for record-breaking consumer spending in the tech sector hangs in the balance, contingent on the final form and implementation of these proposed tariffs.
The CTA's report highlights that Trump's proposed blanket tariff of 10-20% on all imports, coupled with an additional 60% or more on goods from China, could have severe repercussions for the consumer technology market. These tariffs could substantially reduce demand for devices heavily reliant on Chinese manufacturing and potentially decrease consumer purchasing power by $90 billion to $143 billion.
Brian Comiskey, a futurist at the CTA, noted at CES 2025 that without the tariffs, the industry was poised for a "super cycle" as consumers seek to upgrade their tech hardware to access the latest AI offerings. However, the implementation of tariffs could significantly alter this trajectory.
The potential impact of these tariffs on consumer tech prices is substantial. The CTA has previously estimated that under Trump's proposed tariffs, the average price of laptops and tablets could increase by 45%, smartphones by 25%, televisions by 9%, and video games and consoles by nearly $250 above their current sale prices.
Economists have warned that Trump's proposed tariffs would likely raise prices for American consumers, compounding the ongoing effects of inflation. The incoming administration's plans for implementing these tariffs remain unclear, with Trump denying reports of a less extensive tariff rollout.
The tech industry now faces a period of uncertainty as it awaits clarity on the new administration's trade policies. The potential for record-breaking consumer spending in the tech sector hangs in the balance, contingent on the final form and implementation of these proposed tariffs.
