Newly increased tariffs on goods imported from China could have a big impact on consumer prices for electronics and computers, experts warn.
Several companies, including Target and Best Buy, have already warned of potentially higher prices in coming months if the new 20% tariffs levied by the Trump administration remain in place.
China is a significant importer of electronic products into the United States, leading to fears that prices could balloon as a result.
For Glenview-based Abt however, preparations for potential tariffs have left them in a position to withstand their impact at least temporarily.
“We know there is a trickle-down effect that is going to happen, but right now we are not too concerned about it,” Shirley Hood said.
Hood said that the company has stocked up on certain products in anticipation of new levies on Chinese products.
“We have been super-ordering,” she said. “We have ordered more than we have previously ordered just to make sure our customers won’t see the effect of price increases.”
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While tariffs on automobiles were temporarily lifted by the Trump administration on Wednesday, the 20% tariff on goods from China remains in place.
According to the Illinois Department of Commerce, the state imported more than $27.2 billion in computer and electronic products from China in 2023, making it by far the most important trade sector from the country. Illinois also exported more than $470 million in electronics to China, the third-highest amount of any item.
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China has already pledged to levy reciprocal tariffs on products exported from the United States, which could have an adverse effect on Illinois-based companies.
If the tariffs remain in place, it could soon cause issues in the production sector, with Dominick Miserandino of the Retail Tech Media Nexus saying that U.S.-based production won’t be able to ramp up quickly enough to alleviate price increases in the short-term.
“You can’t make a chip factory overnight,” he said. “Consumers who were expecting a solution with a factory appearing somewhere in the middle of America…it will take a good deal of time to build an entire factory.”
It is expected that the Trump administration will continue to evaluate the tariff situation, though the president insists that the move will result in more economic prosperity for the United States and encourage companies to make more products within the country.
Studies have indicated that the tariffs could have an adverse impact on prices of consumer goods, with mainstream economists largely dismissing the value of tariffs as a tool for economic growth.
