• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Tariff threat looms over the year’s biggest electronics show
Editor's Pick

Tariff threat looms over the year’s biggest electronics show

by January 9, 2025
by January 9, 2025 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Tech companies big and small are offering bold visions of artificial intelligence-infused products that could be headed into our everyday lives soon. Unless tariffs trip them up.

That’s the message from the head of the Consumer Technology Association, which is holding its annual electronics show in Las Vegas less than two weeks before Donald Trump returns to the White House on a campaign promise to dramatically raise tariffs — also known as import duties or levies — on goods coming into the U.S. from abroad.

The president-elect has promised surcharges of at least 60% on products coming in from China, a 25% tariff on Mexican and Canadian imports, and blanket tariffs of 10% to 20% on goods from virtually every other country.

“The most beautiful word in the entire dictionary of words is the word ‘tariff,’” Trump said on the campaign trail, pledging to bring companies’ operations back to the U.S. from abroad and spur domestic manufacturing.

Economists, however, say the most likely outcome of higher tariffs would be price increases for consumers as companies that manufacture or source parts internationally pass along higher costs to buyers. Federal Reserve officials are also weighing concerns that Trump’s trade policies could fuel inflation.

One of the tech companies exhibiting at CES is Yarbo, which makes a lawn-care robot that offers to map a yard and snow blow it autonomously. It’s also modular, meaning it can transform into an autonomous lawn mower to trim grass in the spring and summer.

The New York-based company manufactures the product in China. Co-founder Kenneth Kohlmann said Trump’s tariff agenda is a big question mark for Yarbo.

“We have plans for that if that does happen. It’s anyone’s guess what tariffs will be applied to what,” Kohlmann said, adding that the company could shift its supply chain to blunt the impact of any Trump action.

A robot dog by Tombot at the Consumer Electronics Show in Las Vegas on Sunday.Patrick T. Fallon / AFP – Getty Images

But many small businesses, including those that weathered the duties Trump imposed during his first term in office — most of which President Joe Biden preserved — say their ability to adjust to further tariffs is limited or nonexistent. In the weeks after the election, some operators shook up their plans for 2025, placing rush orders or looking for cost cuts.

And while some analysts have voiced skepticism that Trump will execute all the trade policies he’s proposed, the CTA, which represents consumer-facing tech companies, is already warning that customers would pay the price for higher tariffs.

“It’s like being concerned about the weather: Everyone talks about it but nobody can do anything about it,” said CTA CEO Gary Shapiro. Still, he predicted, “If you have the type of tariffs that President Trump was talking about, we will have a Great Depression.”

In a statement, Trump transition spokeswoman Karoline Leavitt said the president-elect will work to ‘fix and restore an economy that puts American workers first by re-shoring American jobs, lowering inflation, raising real wages, lowering taxes, cutting regulations, and unshackling American energy.’

The CTA issued an analysis in October estimating that Trump’s tariff proposals would drive up average prices for laptops by $357, smartphones by $213 and televisions by $48.

“If countries see that we’re putting tariffs on the products, they’re going to reciprocate,” Shapiro said, nodding to the cycle of retributive levies Washington and Beijing lobbed at each other during Trump’s first term. “They’re going to go retaliatory against us, and that’s something which is really harmful to not only Americans but to innovation.”

Businesses in a range of industries were forced to adapt to those tariffs. In some categories, like electric vehicles, the Biden administration even moved to hike tariffs further to address concerns about Chinese green tech edging out U.S. competitors.

While the CTA has slammed Trump’s tariff plan, it welcomes lighter regulation under the incoming administration.

“Investment should go up in smaller businesses, which is great for the economy under President Trump,” Shapiro said.

The group also backs a change in leadership at the Federal Trade Commission, helmed by Biden appointee Lina Khan. Under Khan, the FTC attempted to crack down on large mergers but failed to convince the courts to stop large transactions, including the Microsoft-Activision Blizzard deal. Trump announced he would replace her with Andrew Ferguson, a Republican who is an FTC commissioner.

There is reason to believe Trump may not wind up implementing every tariff proposal he has put forward.

Properly used, tariffs ‘are a very powerful tool, not only economically, but also for getting other things outside of economics,” the president-elect told NBC News’ Kristen Welker last month. He has indicated he sees duties as a negotiating tool to secure other countries’ help in restricting immigration or policing fentanyl trafficking.

For now, that has left some tech companies guessing about how to prepare.

“I don’t really think they’ll be applied to a product like this,” Kohlmann said of his Yarbo snowblowers. “But they might be.”

This post appeared first on NBC NEWS
You Might Also Like
  • Home buyers to be spared broker commissions up to 6% under Realtor group settlement
  • Amazon Web Services CEO Adam Selipsky to step down
  • Americans grow more confident about the economy, even as the Fed’s inflation fight continues
  • Applebee’s owner plots turnaround to lure back fast-food customers and home cooks
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Nvidia’s Jensen Huang is ‘dead wrong’ about quantum computers, D-Wave CEO says
next post
Boston Scientific’s Record Surge: Here’s How I Found It

You may also like

The U.S. economy added 187,000 jobs in July, fewer than...

August 9, 2023

Microsoft confirms performance-based job cuts across departments

January 10, 2025

Mortgage demand falls to 27-year low despite drop in interest...

September 8, 2023

Southern California Edison acknowledges videos suggest link between equipment and...

February 7, 2025

FTX co-founder Sam Bankman-Fried should be jailed until trial, prosecutor...

July 27, 2023

Wendy’s will offer $3 breakfast deal as rivals such as...

May 21, 2024

United Airlines CEO responds to string of safety incidents that...

March 20, 2024

Tesla settles lawsuit over Autopilot crash that killed Apple engineer

April 12, 2024

Autoworkers go on strike at plants for each of the...

September 15, 2023

Bed Bath & Beyond files for bankruptcy

April 24, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Tesla agrees to first deal to build China’s largest grid-scale battery power plant

      June 21, 2025
    • Oil prices rise more than 1% as Israel vows to intensify attacks on Iran

      June 20, 2025
    • RRG Alert Tech Vaults to ‘Leading’—Is XLK Signaling a New Rally?

      June 20, 2025
    • Apple looking to make ‘premium’-priced folding iPhones starting next year, analyst says

      June 20, 2025
    • Nike pushes back Skims launch with Kim Kardashian due to production delays

      June 19, 2025

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 3,599 views
    • 2

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,875 views
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,578 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,541 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,417 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,143)
    • Investing (538)
    • Stock (2,621)

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 2

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Tesla agrees to first deal to build China’s largest grid-scale...

      June 21, 2025
    • Oil prices rise more than 1% as Israel vows to...

      June 20, 2025
    • RRG Alert Tech Vaults to ‘Leading’—Is XLK Signaling a New...

      June 20, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,143)
    • Investing (538)
    • Stock (2,621)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Malls are using new restaurants to...

    December 20, 2024

    Gold prices hit another record high...

    April 4, 2024

    Richard Parsons, former Time Warner CEO,...

    December 27, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here