Laptop, smartphone, and game console prices could soar after the election
Tech companies are bracing ahead of the US presidential election, dreading the looming threat of more tariffs that could further restrict the flow of imports from China, no matter which candidate is elected.
Tariffs are a tax placed on imports and are intended to disrupt trade with foreign adversaries. While former President Donald Trump has frequently claimed that China pays for tariffs, in actuality, that tax is paid by US businesses and citizens any time they want to purchase a restricted good from China.
Used as a trade barrier, tariffs can place an economic burden on countries like China, but that burden is really only felt if businesses and consumers avoid importing goods. If companies cannot cost-effectively or practically switch suppliers—as is the case with China, which is a dominant global manufacturing hub in the tech industry—shrinking profit margins can trigger US businesses to spike prices for consumers.
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”