American consumers will spend a record $537 billion on new apps, devices and gadgets in 2025, according to the Consumer Technology Association's (CTA) annual forecast. But that outlook is under threat from Donald Trump's proposed tariffs, Brian Comiskey said at CES 2025 in Las Vegas.
The CTA projects retail revenue growth of 3.2% compared to 2024, which would be a new record for the U.S. consumer technology market. However, Trump’s tariff plans, which include tariffs on technology imports, could lead to a significant reduction in Americans’ purchasing power.
“Tariffs on technology products could lead to a reduction in U.S. purchasing power of $90 billion to $143 billion”, – Comiskey emphasized.
The CTA report, published earlier in October, considered two tariff scenarios:
- 10% or 20% tariffs on all goods imported
- 60% tariffs on imports from China.
If these measures are implemented, prices for laptops and tablets could increase by 46%, game consoles – by 40%, and smartphones – by 26%. This could lead to a decrease in sales of:
- tablets and laptops – by 68%,
- game consoles – by 58%,
- smartphones – by 37%.
But without new tariffs, the technology industry is poised for a “supercycle” of consumer spending, as Comiskey said. This is because new devices such as computers, tablets and smartphones offer exclusive AI-based features, such as Apple Intelligence or Microsoft Copilot+.