United States will soon have a more expensive smartphone market

The trade war between the United States and China has many consequences. Due to it, the two countries impose all kinds of tariffs, which make products more expensive. In the case of the Americans, these tariffs may have a somewhat negative effect, since the prices of smartphones in the country are going to increase.

The smartphone market in the United States will be more expensive

Certain products and materials have some tariffs, which cause prices to rise. Because many products are made in China, most in the tech sector, prices in the United States are on the rise.

More expensive prices

A new round of tariffs comes into effect on July 2, representing a rise in prices. In addition, not only the smartphones to be launched in the United States will come with a higher price. Also components and other products or even computers would be more expensive. The price increases can be about $ 30 in some products, compared to the international version.

Finished products are already included in these new tariffs. Until now they were components, but now products such as phones, tablets, computers or cameras, which have been made in China, are subject to a tariff that applies an additional fee of 25%. So the mobile phones manufactured in the country end with a significant price increase. A price that is ultimately the consumer who assumes it.

Many brands, including the American Apple, manufacture in China. Also these brands have to raise the price of their phones, to avoid losing money with each unit sold. In the case of Apple, it is speculated that some of its iPhones could go up in price by around 15%. Although the prices that the brands will establish within a couple of weeks on their phones, as a result of this new United States tariff, are not yet known. Apple is not the only one affected by this, many other phone brands will also have to resort to a price increase, to offset these tariffs.

Many companies are currently developing plans to move their production out of China. Firms like Nintendo, Google or Apple currently have plans, so that such tariffs are avoided. So it would not be surprising if we see that many brands end up producing in other countries in Asia, as a way to avoid having to pay an additional 25% on their products.

The G20 summit is held next weekend. All eyes are on it, as the United States and China have at least one meeting planned at this event. Topics such as the blockade of Huawei or these tariffs will surely dominate the talk. The question is whether this will help any agreement. If not, these tariffs come into effect on July 2, promising to raise prices of telephones in the United States significantly.

AA source