TECH NEWS – Mexico, China and Canada have all received tariffs from the U.S., and U.S. consumers will pay the price.
On February 1, the tariffs promised by US President Donald Trump and swiftly implemented after his inauguration went into effect. Mexico was hit with a 25% tariff on its products, Canada with 25% and China with 10%. China is one of the largest exporters of electronic goods to the U.S. and is therefore responsible for the production of computer components. The 10% tariff will almost certainly make components more expensive, but it remains to be seen by how much, and the US could take an even tougher stance if the affected countries also take action against America. We have previously reported that hardware could be up to 40% more expensive if the previously mentioned 60% tariff goes into effect.
The trade war has officially begun, here’s our take on it:
1. New tariffs of 25% on Mexico, 25% on Canada, and 10% on China are now live. We must first put this into perspective
2. Mexico and Canada’s exports to the U.S. account for approximately 78% and 77% of their total…
— The Kobeissi Letter (@KobeissiLetter) February 2, 2025
Trump promised this in his election campaign and it follows that laptops and tablets could rise by 46%, consoles by 40% and smartphones by 26% if it goes that far. Many companies (e.g. Nvidia, AMD, Microsoft) are already preparing for the President’s protective tariffs, which could drive up prices in a hurry.
Consumers should therefore be prepared for the possibility that not only electronic goods, but also other products (even medicines!) could become more expensive, as Mexico and Canada are involved in several industries (the latter mainly in the pharmaceutical sector). With the tariffs that went into effect on February 1st, a trade war will break out, and since neither manufacturers nor distributors will bear the cost of the tariffs, it will be the consumers who will end up paying the bill.
This has no impact on the EU at the moment, but as Trump wants to tax products from the EU (in fact, he announced it tonight!), the EU is likely to do the same for products from the US. Over time, it is likely that the price increase will be felt here as well, but it is a question of when and to what extent.
Source: WCCFTech
Trump says will “definitely” slap tariffs on the EU “very soon” https://t.co/JiZtzaOQPw pic.twitter.com/vhTk45dPL6
— Bloomberg TV (@BloombergTV) February 3, 2025
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