The U.S.’s biggest consumer electronics trade group has crunched the latest numbers on President Trump’s tariffs — and it’s warning that prices of popular products will soar if the announced levies take effect and “fully pass through to retail prices.”
The Consumer Electronics Association issued revised data in a new report Tuesday. The updated analysis, which draws on data from Trade Partnership Worldwide LLC, suggests that American consumers face a potential drop in purchasing power of up to $123 billion annually if current and announced new tariffs take effect.
According to the CTA, as things stand now, tariffs could result in the price of video game consoles rising 69% and the price of smartphones increasing 31%. In addition, prices for consumers on laptops and tablets could rise 34% and monitor prices could increase 32%, the study estimated.
Last week, Microsoft announced price hikes of more than 25% for its Xbox consoles as well as increases on accessories and some of its upcoming first-party games. On May 1, Apple CEO Tim Cook told investors that Trump’s tariffs could add $900 million in costs for the company in the June 2025 quarter; past that, any predictions are “very difficult,” he said, “because I’m not sure what will happen with tariffs.” In the June quarter, Apple expects the “majority” of the iPhones sold in the U.S. to come from India, and for iPads, Macs and most other company products imported to the U.S. to be manufactured in Vietnam.
The CTA’s update builds on earlier research from January 2025 and September 2024 to reflect recent actions by the Trump administration, including baseline tariffs of 10% on all imports and additional proposed tariffs ranging from 11% to 50% on trading partners — and an effective 145% tariff rate on imports from China.
“Tariffs are taxes paid by Americans,” Gary Shapiro, CTA’s CEO and vice chair, said in a statement. “Higher tariffs don’t just affect businesses, startups and founders — they’re a pocketbook issue for American families, potentially raising the cost of the tech Americans love and rely on daily.”
Shapiro continued, “While this Administration is rightly focused on jobs, data shows these tariffs are more likely to hurt industry and add to inflation, rather than help Main Street America thrive.”
The CTA’s updated estimates reflect a scenario in which the current 10% baseline tariffs remain in effect and suspended “reciprocal tariffs” — which are stacked on top of existing Section 301 and International Emergency Economic Powers Act (IEEPA) tariffs on July 9, 2025 — resume after a 90-day pause. Other Section 232 investigations into semiconductors, electronics, copper and critical minerals could further increase import costs for technology products and manufacturing inputs, according to the trade group.
According to the CTA’s revised estimates, economic losses could reach as much as $69 billion annually, even after accounting for potential reshoring and new domestic production. For every $1 in gains to domestic producers, consumers may lose up to $16 in spending power, according to the trade group.
Also Tuesday, the CTA announced the launch of Trade Week, an event that will convene the association’s members in Washington, D.C., to “share their stories on the effects of ongoing and proposed tariffs with members of Congress and the Administration.” The trade group said it will kick off an omni-channel ad campaign about the tariffs issue.
CTA, founded in 1947, operates the annual Consumer Electronics Show (CES), held in Las Vegas.
