The Consumer Technology Association (CTA) projects that tariffs on consumer technology products could increase by US$1 billion or more if the new 10% tariffs on imported Chinese products take effect on September 1, 2019.
The data, compiled and analyzed by The Trade Partnership, finds that the industry paid US$1.7 billion in tariffs in June, more than eight times higher than it paid in June 2018 despite a 39% decrease in imports year over year. This is largely due to the ongoing trade war, and the additional tariffs would nearly double that total in September.
In June, the United States imported more than US$13 billion in consumer technology products from China that would face new 10% tariffs on September 1. Tech products that would be impacted in the latest round of tariffs include smartphones, laptops, tablets, computer monitors, TVs, Wi-Fi routers, digital cameras, smartwatches, wireless earbuds/headphones, smart speakers, flash memory (SD cards, USB thumb drives, solid state hard drives), printers and printer cartridges, cable set-top boxes, streaming media players, and lithium batteries.
"Tariffs are taxes - and increasing costs on companies puts consumers in the middle of President Trump's trade war," says Gary Shapiro, President and CEO, CTA. "While we support the president's effort to stop China's forced technology transfers and IP theft, this unpredictable trade policy forces companies to raise the costs of their products, leaving American businesses, workers and families - not China - to pay for these tariffs. The president does not have unilateral authority on trade. CTA urges Congress to pass the Reclaiming Congressional Trade Authority Act of 2019, which would reassert Congress' role in trade policy and protect Americans from being crushed by unending trade wars and retaliatory tariffs."
The new June costs include US$131 million in tariffs on 5G-related products including smartphones, routers, gateways, and servers - a critical emerging technology which faced virtually no tariffs prior to the trade war. Since July 2018, Section 301 tariffs on China have cost the industry over US$10 billion, says CTA, including US$1 billion on 5G-related products.