The price of your next Smartphone or Laptop may be higher than you planned.
President Donald Trump has ordered a 10% tariff for imports from China, which came into force on Tuesday morning. China retaliated immediately putting tariffs on some American products.
Tariffs could mean that you will soon have to pay more for products imported from China, including electronics. Apple, for example, produces a lot of its IPhones, iPads, MacBooks And Airpods in China.
Some products imported from China are already subject to tariffs Trump ordered during his first term. Announcing additional tariffs this weekend can raise prices even more. Trump also announced tariffs on imports from Canada and Mexico over the weekend, but cut these tariffs for at least a month in negotiations with the two countries.
Tariffs, in theory, are designed to influence other countries because their goods are taxed. The tariffs are paid by the US company importing the product, and this addition is usually – but not always – handed over to the consumer in the form of higher prices.
“I expect many items coming from China or have parts made in China to raise the price,” he said. Doug KerryAuthorized financial analyst and president of WealthTrace, a financial planning software company.
Well, do you need to buy electronics and other imported products now to avoid tariff costs? We asked the experts.
Technology prices like iPhone and MacBooks could rise
Experts expect tariffs charged to China's products – and potentially Canada and Mexico – they will turn into higher prices. It means the technology you use every day, such as imported smartphones, tablets, laptops, TVs And even kitchen devicesIt can become even more expensive this year.
How can it look like? If the whole price is transferred to customers, we may notice an increase of 10%. For example, a 13-inch MacBook Air Currently starts at $ 849 on Amazon; Raising 10% will increase the basic price to $ 934. The iPhone 16 ProWho starts at $ 1,000 at T-Mobile, it can jump up to $ 1,100.
A 10% tariff for goods made in China does not necessarily mean that prices will rise for the same amount. In some cases, they may not grow much if at all.
If companies want to stay competitive, they can absorb some of the costs to keep their prices lower, he said Steven F. ConnersCertified Real Estate Planner and Conners Management President.
Read more: Higher tariffs could make solar solar
Do you need to buy technology now to avoid tariffs later?
If you were planning to buy a new iPhone, game console, MacBook or other technology, buying can now save you money.
“Because of this, items that people need to think about buying now rather than later are smartphones, tablets, laptops, TVs, furniture, kitchen devices, clothing and footwear,” Kerry said.
But if you don't have money on hand and plan to use a credit card or buy now, pay later plan just to avoid tariffs, experts say. With average credit card interest rates currently over 20%, Costs to finance a large purchase It can delete all the savings they would receive by buying before prices rise as a result of tariffs.
“I would not recommend purchasing panic, especially if these items are not necessary,” Connors said.
One way to save, even if prices go up, is to buy last year's model instead of the latest release.
“If you are not planning to upgrade your smartphone next year, for example, there is no need to rush to buy a new smartphone,” he said. John DubravacChief Economist in IPC, Association for Trade Production. “Technology is naturally deflationary, which means that over time, performance is rising and prices generally decrease for similar quality products.”