Proposed tariffs on Chinese printed circuit assemblies and connected devices could cost the U.S. economy $520.8 million and $2.4 billion annually for the 10 percent and 25 percent tariffs, respectively, the Consumer Technology Association (CTA) found in a new study.
The economic impact study commissioned by CTA showed that shoppers will have to pay between $1.6 billion and $3.2 billion more for connected devices, including things like gateways, modems, routers, smart speakers, smartwatches, and other Bluetooth enabled products. The price of those products imported from China will increase by between 8.5 percent and 22 percent, while the prices for products from all sources will rise by between 3.2 percent and 6.2 percent, CTA reported.
As for the printed circuit assemblies from China, CTA found that prices in that market could increase by between 9 and 23 percent, while similar products from other U.S. manufacturers could increase in price by 2 to 3 percent higher. As a result of those higher input costs, which would total an additional $900 million to $1.8 billion, American manufacturers of products that contain those printed circuit assemblies will purchase between 6 and 12 percent less from suppliers, CTA said.