Tariffs Trigger Price Surge in Electronics: Middle-Class Americans Face $123 Billion Spending Hit
July 5, 2025
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.
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