Proposed Trump Tariffs May Slash U.S. Tech Purchases by $143 Billion – CTA Warns

The Consumer Technology Association (CTA) has raised alarms over the tariffs proposed by President-elect Donald Trump, cautioning that such policies could severely weaken Americans’ purchasing power for technology products.

The CTA estimates that consumer spending could drop by a staggering $143 billion, significantly impacting the tech market. According to its report, purchases of laptops and tablets might plummet by as much as 68%, while gaming consoles could see a 58% decline. Smartphone sales, a vital pillar of the modern tech industry, are projected to fall by up to 37%.

“We’ve been closely monitoring the potential effects of these tariffs through our forecast research, particularly on products like smartphones and laptops that consumers rely on daily,” said Brian Comiskey, CTA’s senior director of innovation and trends.

Despite this looming threat, the report predicts that the U.S. consumer technology industry will grow by 3.2% to reach $537 billion in 2025, reflecting its resilience. However, Gary Shapiro, CTA’s CEO, warned that proposed tariffs could undermine the tech sector’s ability to drive economic growth.

“Tariffs act as a tax on American businesses and consumers, negating the deflationary benefits of technology in the global economy,” Shapiro emphasized. “We urge the incoming administration and Congress to champion an Innovation Agenda that fosters growth and strengthens our industry.”

Ed Brzytwa, CTA’s vice president of trade, expressed additional concerns about potential global backlash. “Retaliatory actions from trade partners could increase costs, disrupt supply chains, and weaken U.S. industrial competitiveness,” he noted, urging policymakers to carefully weigh these consequences when shaping trade policies.

The CTA’s appeal underscores the critical role of innovation-friendly policies in ensuring the continued growth and accessibility of consumer technology.