The US is shifting its trade policy as President Donald Trump renegotiates terms with nations across the globe. After declaring the trade deficit a national emergency, the administration initially proposed a 145% tariff on Chinese goods, later reduced to 30% during a 90-day negotiation period. According to the Consumer Technology Association, a 25% tariff on all products in the consumer electronics space could increase smartphone prices by 31%, and laptops and tablet prices by 34%.
With tech products like Apple devices caught in the middle, is now the right time to buy the latest gadgets, or should you wait for global trade to stabilize?
Consumers planning to replace their phones or televisions soon may want to act quickly. It’s worth assessing whether the upgrade includes features essential for home or business use, and whether current devices still have meaningful lifespan left.
For instance, my personal laptop has about one more big project left in it, or a year or two of life. I didn’t “panic buy” a laptop this spring, although I did think about switching phones. (I’d recently spent about the price of a new Apple laptop on travel instead.)
On the other hand, buying now guarantees access to a current-generation device regardless of what happens over the next four years.
The tariff war is “going to lead to higher costs for consumers ultimately and for households,” said Ed Brzytwa, Consumer Technology Association vice president of international trade.
While he emphasized that the CTA is not in the business of telling consumers how to spend their money, Brzytwa pointed out that families begin to plan back-to-school purchases, including devices, in the summer. The uncertainty of the tariffs has created an unusual atmosphere in which to make those decisions.
“The administration is creating a lot more uncertainty with these varying dates: tariffs on, tariffs off, tariffs might come back on. And so, if you think that the tariffs are going to come back on July 9th, you would want to purchase something before that because prices might go up later,” Brzytwa said.
Proponents of the tariffs argue that reshoring manufacturing, particularly in advanced chipmaking, would benefit the US economy.
SEE: Trump postponed a 50% tariff on all imports from the EU
Legal status of tariffs is in flux
At the same time, the U.S. Court of International Trade on Wednesday blocked the tariffs from coming into effect, ruling they are an overreach of presidential authority. The Trade Act of 1974 does allow a president to impose temporary trade taxes up to 15%, the court noted, and the Trump administration declared it was “committed” to its original declaration of a national emergency around trade deficits. Tech companies and buyers may see a reprieve if the court can enforce the ruling.
As of Thursday, it can’t. A federal appeals court granted the administration’s request to pause the ruling.
The Federal Circuit will hear from plaintiffs in the case, who are representatives of US states and small businesses, by June 5. The defendants in the administration may respond to the plaintiffs by June 9.
Meanwhile, economists have begun referring to Trump’s tariff policy using the acronym “TACO” (Trump Always Chickens Out) — a pejorative indicating the administration often backs down from severe tariff threats.
Raw materials and resources underpinning the tech industry could be hit with tariffs
Many raw materials used in global technology production originate in China; in the event of a trade war, US battery storage operations could be severely affected. China’s export controls on rare earth metals, essential components in computer chips, could also disrupt production at manufacturing plants in the EU. These restrictions are widely seen as a preemptive move as China braces for further escalation in trade tensions with the US.
A report by energy analytics firm Wood Mackenzie warns that higher tariffs could reduce global GDP by about 3% by 2030, driven by impacts on oil, gas power, and metals markets.
Apple devices may increase in price
Shoppers eyeing new Apple devices later this year shouldn’t expect steep discounts. Apple products are likely to be affected by tariffs, as the vast majority of those devices are manufactured overseas. For example, an iPhone that previously retailed for $1,200 could increase in price to $1,500 under new tariff rates. Analysts estimate that fully manufacturing iPhones within the US could drive retail prices up to $3,500 per unit.
To mitigate these effects, Apple has begun shifting parts of its supply chain out of China. According to CEO Tim Cook, most iPhones sold through June 2025 will originate from India, where Apple is scaling up production. The company also maintains a manufacturing presence in Vietnam.
This transition may not shield Apple from rising costs. “Prices may still go up as India will not be as efficient in manufacturing as China but may be less impacted by tariffs,” said Gartner analyst Ranjit Atwal in an email to TechRepublic.
The shift has also drawn political pushback. Trump criticized Apple’s move to India and even threatened to impose a 25% tariff on iPhones specifically, a policy that, for now, remains unenforced.
Apple and similar companies may choose to absorb some of the cost increases internally to avoid passing them along to consumers. But, Atwal said, Apple is more likely to try to make manufacturing more efficient and reduce cost structure.
“There may be short-term impact on margins, but Apple may focus on pushing higher priced goods to users to maintain revenue and then margins,” he said.
What about devices assembled in the US? Apple produces some semiconductors at a TSMC facility in Phoenix, but they are still shipped overseas for assembly.
Trump suggests 25% tariffs could be applied to Samsung phones
On May 23, Trump said Samsung devices could face the same 25% tariff as Apple products. Many Samsung models sold in the US are manufactured in Vietnam or India. While Samsung also manufactures in South Korea, Brazil, and Indonesia, those units primarily serve local markets and are not widely exported to the US. The company also assembles televisions in Mexico.
In its April earnings call, Samsung CFO Soon-cheol Park predicted “potential risk of demand slowdown” due to uncertainty around US tariffs. Samsung may consider relocating some of its manufacturing if high tariffs remain in place.
Google and Microsoft are insulated from some economic uncertainty regarding tariffs
While Google and Microsoft are headquartered in the US, both companies manufacture a significant portion of its hardware abroad. Google and Microsoft are likely stockpiling devices in US warehouses ahead of possible tariffs; once that inventory runs out, increased import costs may be passed on to consumers.
Microsoft assembles many of its laptops and tablets in China and Vietnam. Game consoles could also experience price increases. Additionally, it may incur higher hardware costs for its own operations.
However, as a software-centric business, much of Microsoft’s revenue is less exposed to tariffs. CEO Satya Nadella said in an April earnings call that the company may be well-positioned to help enterprises reduce costs through software solutions in uncertain economic conditions.
Google’s primary revenue stream — digital advertising — is unlikely to be affected by tariffs on physical goods; however, the company could feel the impact if advertisers reduce spending amid rising prices. Additionally, Google’s infrastructure investments in data centers — such as servers and networking hardware — may face cost increases if components are hit by tariffs.
Overall, Google and Microsoft are less likely than Apple or Samsung to experience substantial product price increases.
However, all tech providers would likely see increased costs of infrastructure under an aggressive tariff policy. Components for AI data centers, the number of which are on the rise, also come from overseas.
“Those costs will be borne by the consumer in the form of higher prices because it’s going to filter through the supply chains, and maybe even into the services that are provided by US companies to consumers,” said Brzytwa.
Prices of smart home and IoT devices may increase
Tariffs could also affect the prices of smart home and Internet of Things (IoT) devices. Brands like LG, Dyson, and others may see their costs rise. General Electric produces most of its components domestically, which could help it maintain price stability. Although GE’s appliance division was sold to Chinese manufacturer Haier, its products are still assembled in Kentucky.
Amazon’s smart home devices, including Alexa products and Kindles, are manufactured by Foxconn in China, making them vulnerable to tariff pressures.
Tariffs on lithium-ion batteries and many small home electronics — most of which are produced in China — are also expected to increase prices across multiple consumer categories.
SEE: Our previous coverage about tariffs and tech prices
What comes next?
With reciprocal tariffs expected to take effect in June — and with the US administration using device prices as a bargaining chip — uncertainty remains. Analysts suggest Trump could be starting the negotiations with aggressive tariff proposals to force global partners to concede, with final numbers likely to land lower than initial threats.
On the other hand, if the 145% tariffs do go into effect, “no one’s going to pay that 145% tariff rate, so that leads to unavailability,” Brzytwa said.
“There won’t be goods and empty shelves, and that’s always been the worry that we won’t have those products at all on the shelves in the United States because of the high tariff rate,” he said.
