After the new White House administration introduced 25% tariffs for Canada and Mexico over the weekend, and paused their execution upon the neighboring countries' reciprocation, it did the same with China and doesn't seem to be in a hurry to renege.
The tariffs on Chinese goods coming into the country, however, could affect the prices of consumer electronics, most of which are made there and imported in the US. The big brands like Apple probably won't feel much, as the American public is buying their phones mainly subsidized through carrier plans.
The ones most affected by the Trump administration tariffs on Chinese goods entering the US will be the brands that are often sold on prepaid plans that don't require a lengthy contract. Since those are typically not subsidized by the carrier, they are usually more affordable phones, and very often the budget offerings of Motorola or TCL, with Moto now third-largest seller, as per Counterpoint.
US phone brands market share | Image credit – Counterpoint Research
Those Motorola phones are exactly the ones that will be now more expensive, provided that the US tariffs on China remain in place, according to analyst Avi Greengart for Fierce. Samsung may actually gain share in the prepaid market from the low end with phones like the Galaxy A16 or A25, while Apple is expected to escape the Chinese tariffs largely unscathed:
Most of Apple’s supply chain remains in China, but Apple was able to avoid tariffs with exemptions during the last Trump administration, and that could happen again now. Even if it doesn’t, carriers and distributors have been building up a bit of inventory in advance of Trump’s tariffs, so there will be a lag in terms of timing.
The US tariffs on China went into effect on Tuesday and Beijing reciprocated with import taxes on coal, gas, oil, and big vehicles including farming equipment and pickups, among other things. China also started a largely symbolic antitrust investigation in Google, but US Postal Service freeze of package deliveries from China is anything but symbolic. The executive order includes a removal of the so-called minimum value of $800, under which the good is not taxed, and is the way that the vast majority of shipments from Shein or Temu enter the US to form 30% of the small packages that get to consumers. Amazon is also likely to be affected, as it is full of Chinese companies selling through its platform.
Long story short, yes, Motorola phones are likely to take a price hike hit in the sensitive prepaid realm, too, just when Moto was notching a rising market share in the American market as it moved to swiftly take LG's third place after Apple and Samsung here.
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Daniel, a devoted tech writer at PhoneArena since 2010, has been engrossed in mobile technology since the Windows Mobile era. His expertise spans mobile hardware, software, and carrier networks, and he's keenly interested in the future of digital health, car connectivity, and 5G. Beyond his professional pursuits, Daniel finds balance in travel, reading, and exploring new tech innovations, while contemplating the ethical and privacy implications of our digital future.
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