Consumer electronics -- devices like iPhones, iPads, and Macs -- will account for about $167 billion of the $300 billion in Chinese imports the government is preparing to level new tariffs on, a trade industry group warned this week.
Prices for cellphones could rise by an average of $70 while laptops could go up $120, claimed Sage Chandler, VP of international trade for the Consumer Technology Association. The group represents corporations like Apple, Google, and Intel, and Chandler spoke on their behalf Monday at a hearing hosted by the U.S. Trade Representative's office, according to CNBC.
"A lot of consumers will look at that and say: 'I'll just wait for the next generation.' That's a lot of money for the average consumer," Chandler , adding that because so many other industries now rely on high tech, tariffs would impact them as well.
Barring new diplomacy, the Trump administration is poised to impose 25% tariffs on $300 billion in Chinese imports sometime after a public comment period ends on July 2. The U.S. and China are engaged in a trade war over demands that the latter open up business to foreign firms and better protect intellectual property -- for instance putting an end to forced technology transfers.
The countries are already suffering under tit-for-tat tariffs against each other. These have yet to substantially affect Apple, but the company has vocally opposed anything further, most recently issuing a letter claiming that new tariffs would "tilt the playing field" in favor of competitors.
One recent report claimed that Apple is looking to move as much as 30% of iPhone, iPad, MacBook, and AirPods production out of China. The company's strict quality demands could mean however that it would take as much as a year and a half -- during which Apple would have to eat the costs of any tariffs or shift the burden to the public.