US Tariffs on Electronics Could Raise Prices by Up to 26%

US tariffs on electronic products from Mexico and China could significantly increase the prices of items such as televisions, smartphones, and other electronic devices. This measure is expected to mainly affect imports from Mexico, whose production of electronic devices, such as televisions, has seen considerable growth in recent years.

Richard Barnett, Marketing Director, Supplyframe, a subsidiary of Siemens, tells CNBC that the increase in tariffs to Mexico hurts companies that have made significant advances in their supply chains. 

According to the US International Trade Commission, imports of electronic products from Mexico reached US$102.73 billion in 2023, representing about 18% of the United States’ total electronic imports. This positions Mexico as the country’s second largest supplier of electronic products, after China, which registered US$146 billion during the same year.

This growth is reflected in the expansion of companies such as Hisense, which has invested considerably in its factories in Mexico. Since its arrival more than a decade ago, Hisense has increased its production of televisions in Mexico, managing to produce 9.5 million televisions annually, with most of these destined for the United States and Canada, reports Expansión.

According to OEC World, China led on television exports to the US in 2022, with a total of US$24.3 billion, while Mexico ranked second with US$14.1 billion.

Tariffs are also expected to impact products such as semiconductors, as companies such as Foxconn and Flex invested in factories in Mexico. Alberto Arellano, Infrastructure Domain Director, IDC Latin America, estimates that the tariffs on electronics products from Mexico,  and China could increase the prices of these items by up to 20%. 

Meanwhile, Reuters and trade groups warn that the tariffs pushed by Donald Trump's administration could have negative effects on global trade, potentially increasing the costs of key technology products such as computers, tablets and video game consoles. The prices of smartphones, for example, could rise by up to 26%, Expansión reports.

The tariffs could also affect the competitiveness and accessibility of technology in the United States, which would directly impact demand. Gary Shapiro, Executive Director, CTA, warns that higher prices could have an impact on unit sales, affecting consumers' purchasing decisions.