Tariffs Trigger Price Surge in Electronics: Middle-Class Americans Face $123 Billion Spending Hit

July 5, 2025
Tariffs Trigger Price Surge in Electronics: Middle-Class Americans Face $123 Billion Spending Hit
  • Prices for speakers and headphones might rise by 22%, driven by higher costs of lithium batteries and processors essential for their production.

  • Connected devices such as routers and modems could rise by 22%, potentially hindering the adoption of faster home internet services.

  • The article highlights anticipated price increases for various electronics in the U.S. due to tariffs imposed by the Trump administration, which are expected to significantly impact the middle class.

  • The Consumer Technology Association (CTA) forecasts a decrease in consumer purchasing power by $123 billion as a result of these tariffs.

  • Laptops and tablets are projected to see price increases of 34%, with average retail costs rising by $269 for laptops and $152 for tablets, making basic models less affordable for budget-conscious buyers.

  • Smartphones are expected to experience price hikes of about 31%, leading to a loss of $31.2 billion in consumer spending power.

  • Video game consoles could face a staggering 69% price increase, resulting in an average retail cost hike of $428.

  • Desktop computers may see a 24% price increase, translating to an average retail cost increase of $287 due to tariffs affecting individual computer parts.

  • Computer accessories are also likely to increase by 25%, with notable price hikes reported by companies like Logitech.

  • Lithium-ion batteries, primarily sourced from China, may see an 18% price increase, compounded by existing tariffs set to rise next year.

  • Television prices are projected to increase by 11%, while monitors may see an average retail price hike of about 32%.

  • An entirely U.S.-made iPhone could potentially cost around $3,500, a drastic increase from its current price of approximately $800.

Summary based on 1 source


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