U.S. Tariffs Could Raise Smartphone Prices by 152%, CTA Estimates

Manufacturing popular consumer electronics entirely in the United States could significantly increase prices, according to an analysis by the Consumer Technology Association (CTA). The product categories examined include computer monitors, laptops, robot vacuums, smart speakers, smartphones, smartwatches, televisions, video game consoles, wireless earbuds and wireless headphones.

Smartphone manufacturing costs could rise 152%

According to the CTA, smartphones are “in a league of their own.” They are both the most expensive products in the study to manufacture in the United States and the products Americans are most likely to consider non-essential.

Given the tariffs currently in place, the CTA estimates that fully manufacturing a smartphone in the U.S. would increase production costs by 152%. Some of those additional expenses would likely be passed on to consumers as companies work to maintain profit margins and satisfy investors.

Laptops, smartwatches and TVs would also cost more

Products that rely on processors, memory and advanced displays are expected to see some of the largest cost increases. The CTA estimates that manufacturing a laptop entirely in the United States would cost 93% more, while smartwatch manufacturing costs would rise by 97%.

Televisions would see a smaller increase by comparison, but lower-end TVs could still cost 41% more to manufacture domestically.

Companies may pass some costs on to consumers

Technology companies may not immediately pass all additional manufacturing costs on to their customers. However, the CTA estimates that businesses could pass along 25% to 50% of the increased costs.

Across the 10 product categories in its report, the CTA estimates that the weighted average price would increase by 27% to 55%. For households already looking for affordable technology, those increases could add up quickly as existing devices wear out and need to be replaced.

“Households that replace mobile phones, laptops, and televisions during a typical replacement cycle will face an increase in their purchases with each purchase,” the CTA reported.

Higher prices could delay technology purchases

Households dealing with rising rent, food and fuel costs may delay replacing technology until prices come down in the United States, according to the CTA. Although many consumers do not want to go without smartphones for long periods, fewer purchases could further pressure technology companies as they absorb higher manufacturing costs.

The CTA also warned that lower revenue could discourage investors and make it more difficult to reshore supply chains. While President Trump has said that reshoring will ultimately attract more investment to the United States, the CTA said it remains difficult to determine how many companies will be able to make the transition.

Fully relocating production for each product category would take years, according to the CTA, meaning the impact of tariffs and domestic manufacturing costs could unfold gradually across the technology industry.