Americans are set to spend a record amount of $537 billion on consumer technology this year, including gadgets, apps and all other kinds of consumer hard- and software. That's according to the Consumer Technology Association's latest one-year industry forecast, published ahead of CES, the CTA's flagship event.
That forecast doesn't factor in the impact of the new tariffs proposed by the incoming Trump administration, which would hurt the industry and the U.S. economy overall badly, the CTA warns. In a separate report on the potential impact of the proposed tariffs, the industry association finds that purchases of laptops and tablets could decline by almost 70 percent, smartphone purchases could drop by 37 percent and other categories could see similar drops in consumption if the blanket tariffs proposed during the campaign would in fact be imposed.
"The proposed tariffs would have a significant and detrimental impact on the costs of a wide range of consumer technology products sold in the United States," the report finds, projecting that smartphones would, for example, become 25 percent more expensive for U.S. consumers, resulting in more than $25 billion in lost purchasing power for Americans. Overall, the CTA expects purchasing power to be reduced by $90 to $140 billions by the wide-ranging tariffs.
“The tech sector is America’s economic engine, driving global innovation and job creation,” CTA CEO Gary Shapiro said in a statement. “Our positive forecast reflects the industry’s strength, but proposed tariffs threaten the deflationary power of tech in the global economy. Tariffs are a tax on American businesses and consumers. We urge the incoming administration and Congress to prioritize an Innovation Agenda that fosters growth.”
