According to a Trade Partnership Worldwide (TPW) research report released by the Consumer Technology Association (CTA) on Wednesday, export tariffs imposed in April could cause retail prices of different technology products to rise by 11% to 70%, and game consoles will be the most affected product.American consumer spending will drop by $123 billion, and national economic output will shrink by $69 billion.
The report evaluates the impact of recent US tariff policies on the prices of 10 mainstream technology products, and its conclusion is based on two premises: all relevant tax measures will be fully effective and the cost will be 100% passed on to end consumers.
On April 2, the Trump administration launched a tariff plan in accordance with the International Emergency Economic Powers Act, including imposing a 10% basic tariff on all imported goods and imposing additional tariffs ranging from 11% to 50% on 57 countries.The basic tariffs have come into effect on April 5, and the high tax rates for specific countries will be implemented from April 9.Although the country-specific surcharges were suspended on April 10 (the basic 10% tariff remains) and the electronic products were temporarily exempted on April 11, the Article 232 investigation launched on April 16 brought the tariff risks again - aluminum, steel and automobiles were the first to face 25% tariffs, while China's non-electronic goods tariffs soared to 145%.
Game consoles have become the worst-affected product, with the average tariff rate jumping from 0% to 130%.With 87% of consoles being produced in China (applicable to the 145% tax rate), the report predicts that its retail price may rise by up to 69% ($428 per unit).This will result in a 71% drop in imports, while domestic production, which accounts for only 1% of the market, can only increase by 62%.Consumer purchases are expected to drop sharply by 73%, with an overall loss of purchasing power of US$12 billion. This category alone will cause US$10.4 billion in losses to the US economy every year.
