GoKawiilRyan Haines / Android Authority
TL;DR The US government is considering new tariffs not only on foreign chips but also on consumer electronics like laptops, gaming consoles, and, presumably, smartphones with those chips.
Relief may be offered to foreign companies investing in US manufacturing, but constructing facilities takes years, so there may not be room for immediate price relief.
Combined with rising costs from AI-driven demand for RAM and storage, these tariffs could soon drive retail prices even higher than current levels.
The US government is weighing a sweeping new round of tariffs on semiconductors and finished consumer electronics, a move that could significantly drive up the cost of smartphones, smartwatches, earbuds, and practically everything else with a chip in it. While previous trade disputes and import duties have created headaches for retailers, prompting fallout such as Amazon issuing US tariff refunds to affected shoppers, this new potential move goes much deeper, targeting the core component that powers practically all modern hardware.
According to a report from Politico, the proposed tariff structure under consideration by the Trump administration would dramatically widen the scope of previous duties. Instead of targeting only standalone chips, the administration is exploring duties that apply directly to consumer devices manufactured with those chips. The report names laptops and gaming consoles as potentially affected, but depending on how the rules are framed, this could also affect phones and accessories.
Foreign companies could get relief from these tariffs depending on their investment in US chip manufacturing, in a bid to promote more domestic manufacturing. However, it’s important to note that actually building out manufacturing facilities takes years and involves billions of dollars in investment, and so, companies could feel cornered for any immediate relief.
The report notes that White House defended the use of trade policy to bolster domestic industry in its statement through spokesperson Kush Desai: Reshoring semiconductor manufacturing is a top priority for President Trump, whose policies have already secured hundreds of billions of dollars of investments in this key sector. The Trump administration remains focused on delivering more investments and economic relief for the American people while safeguarding our national security. Further, the report notes that one idea under consideration would set separate tariff rates and quotas for individual countries, with country-specific guidance covering their major semiconductor manufacturers. The new tariffs could have a phase-in period, and the framework could still be substantially revised in the coming weeks or months. The precise rate of the tariff and other key details have not yet been settled.
For ordinary buyers, this approach means the price pain will reach their wallets in noticeable ways. Modern smartphones, tablets, and related accessories rely heavily on global semiconductor fabrication and assembly hubs primarily spread across Asia. If import duties are levied on finished goods based on their internal chipsets, brands will almost certainly pass those added costs along to consumers. Flagship phones, budget handhelds, smartwatches, wireless earbuds, and everything else could see sticker prices rise to offset these import duties, just as we’ve seen in the past few years when other tariffs came into play.
Phone prices were already rising due to AI-driven increases in RAM and storage prices. These new tariffs, if and when they come into play, will be a double whammy for your wallet. If you’re in the market for a new phone, buy it sooner rather than later.
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