Get Ready for Higher Gadget Prices as Tariffs Hit Trade Partners

Shoppers in the United States are bracing for an impending price increase that may have widespread implications across various sectors, including budget-friendly electronics, trendy clothing, and electric vehicles. President Donald Trump has recently enacted a new series of significant tariffs on imports from Canada, Mexico, and China, utilizing the International Emergency Economic Powers Act (IEEPA) and the National Emergencies Act (NEA).

Goods imported from Mexico and Canada will incur a 25% tariff, while items from China will face an additional 10% duty. According to the Tax Foundation, these tariffs will directly impact American consumers' wallets.

“The tariffs on Canada and Mexico alone are projected to increase taxes by $958 billion from 2025 to 2034, translating to an average tax hike exceeding $670 per US household in 2025.”

President Trump has stated, “A 10% tariff on China will remain in place until we achieve full cooperation from the Chinese government concerning fentanyl. China is at the center of the fentanyl crisis affecting American lives.”

— The White House (@WhiteHouse) February 1, 2025

Items sourced from China—including popular consumer electronics like iPhones—are likely to see price increases. Previously, many top-selling electronics like smartphones and televisions had been exempt from tariffs.

“The proposed 10% blanket tariff could affect the pricing of virtually anything manufactured in China and exported to the US, impacting a wide range of products—everything from toys to laptops,” said analysis from the BBC.

Exemptions Are Eliminated

The situation may worsen with retaliatory tariffs. Experts suggest that most businesses will likely pass the increased costs onto customers. China has threatened retaliatory measures, while both Mexico and Canada have already declared their own counter-tariffs.

The White House also noted the de minimis exemption has been revoked. Items imported into the US valued at $800 or less previously benefited from no tariffs, taxes, or fees.

The Low-Cost Advantage Disappears

The de minimis threshold was previously set at $200 before Congress raised it to $800 in 2016. Its elimination could significantly impact shoppers, particularly those purchasing from popular e-commerce sites like Shein and Alibaba.

According to US Customs and Border Protection, over $47 billion worth of goods entered the US under the de minimis exemption, contributing to the rapid growth of sites like Shein at the expense of domestic competitors.

For many lower-income customers, these de minimis purchases were invaluable, offering lower prices despite longer delivery times. The increase in prices will also extend to food, alcoholic beverages, household appliances, and especially electric vehicles.

According to government data, the US imported over $150 billion in motor vehicles and parts from Mexico last year, with Canada contributing $34 billion in vehicle imports.

The ramifications of these tariffs will be felt by all four trading countries involved. “Intermediate goods—especially in the automotive sector—cross borders multiple times before final assembly. Imposing tariffs at each production stage could have disastrous effects,” warns the Peterson Institute for International Economics.

While there is still substantial uncertainty regarding how the tariffs will unfold and their ultimate impact on consumer prices, it is clear that a trade war is underway, and its inflationary effects will likely be felt soon.