Will Proposed Tariffs Reshape the U.S. PC Market In 2025?

Woman frustrated at laptop, holding her head.

Can Trump’s proposed tariffs reshape the U.S. PC market by 2025?

At a Glance

Proposed tariffs could lead to a 46% increase in U.S. PC prices by 2025.
The U.S. PC market expected to grow by 2% annually but faces economic challenges.
Laptops and tablets may see substantial price hikes upon tariffs implementation.
Potential fiscal spending cuts could further complicate market growth.

Proposed Tariffs and Market Outlook

Trump’s proposed import tariffs are predicted to raise U.S. PC prices by up to 46% by 2025, holding back market growth anticipated from technological advancements such as Windows updates and AI-ready computers. Although PC shipments in the U.S. could rise by 2% annually over the next two years, economic constraints like potential spending cuts and rising costs pose significant threats to this growth, according to Canalys.

Laptops lead recent growth, with a 9% year-over-year increase in the third quarter of 2024. However, with weaker Windows refresh momentum and the challenges of integrating AI-capable systems, market expansion might slow. Tariff-induced price hikes are foreseen as a critical concern that may dampen growth.

Broader Economic Implications

President Trump’s administration plans to introduce significant tariffs on imports from key trade partners, including China, Canada, and Mexico. Critics argue that such tariffs, seen as simplistic solutions, will not accomplish goals of economic fairness or environmental protection. Analysts predict these tariffs could cost American households $2,600 per year on average, affecting goods such as electronics, where U.S. dependency on imports is high.

“Electronics are basically ubiquitous,” Raymond Robertson, a professor of trade and public policy at Texas A&M University, said. “I don’t know how this wouldn’t be incredibly disruptive.”

Retaliatory measures by other countries could further strain U.S. exports and jobs. Tariffs on laptops and tablets alone could rise significantly, impacting consumer technology costs and market demand. Concerns are also growing over how tariffs could inadvertently bolster other nations’ global influence.

Trump has proposed a tariff of up to 20% on imported goods from most nations and a 60% tariff on items from China. An August analysis from the Peterson Institute for International Economics found that, depending on how the policy was applied, Trump's tariffs could cost… pic.twitter.com/ayN4T2rRqv

— Money (@Money) November 5, 2024

Industry Response and Future Outlook

Industry analysts warn of potential stockpiling in early 2025 as businesses prepare for higher costs. The Consumer Technology Association suggests a 46% potential rise in laptop and tablet costs, forcing companies to reconsider pricing strategies and consumer demands. Stockpiling goods before any tariff changes occur could offer temporary relief.

Rob Handfield, a professor of operations and supply-chain management at North Carolina State University, told ABC News, “This will directly impact people’s pocketbooks.”

Anticipated budget cuts in the public sector could further reduce future technology spending, hitting the market’s growth prospects. As the situation evolves, the industry eagerly watches how tariffs, economic policies, and global partnerships will shape the U.S. market landscape by 2025 and beyond.