CTA Envisages Economic Impact of up to $2.4 Billion Due to Tariffs

The prices of printed circuit assemblies from China are likely to surge higher by anywhere between 9% and 23%.

SEATTLE (Scrap Monster): A new study commissioned by the Consumer Technology Association (CTA) cited that the China tariffs could cause economic impact of up to $2.4 billion on U.S. Economy. The U.S. administration has proposed tariffs of between 10% and 25% on imports of $200 billion worth of goods from China.

The study employed a model to estimate the ultimate impacts of the imposition of 10% and 25% tariffs on imports of printed circuit assemblies and connected devices from China. The proposed tariffs are likely to have substantial negative impact on U.S. consumers, the study found. According to the CTA economic impact study, tariffs on Chinese printed circuit assemblies and connected devices would cost the economy $520.8 million for 10% tariffs and $2.4 billion for 25% tariffs.

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The prices of printed circuit assemblies from China are likely to surge higher by anywhere between 9% and 23%. Also, the economic impact study shows that U.S. consumers will have to pay between $1.6 billion and $$3.2 billion more for connected devices like gateways, modems, routers, smart speakers, smart watches and other blue-tooth enabled products. The prices of connected devices imported from China are likely to increase by between 8.5% and 22%. Further, the U.S. shipments of connected devices are likely to decline by as much as 12% during the next year. The sourcing may likely shift to other countries, but not largely to U.S. domestic producers, the study said.

Gary Shapiro, CEO and president, CTA urged the U.S. administration not to jeopardize the country’s global standing with tariffs. The country’s trade policy must avoid any tariff that acts like taxes on American manufacturers and consumers. There are likely chances of these tariffs impacting small and mid-size businesses and people who work for them, he added.

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