us-china trade war

tariffs-may-soon-spike-costs-of-cars,-household-goods,-consumer-tech

Tariffs may soon spike costs of cars, household goods, consumer tech


“A little pain”: Trump finally admits tariffs heap costs on Americans.

Canadian and American flags are seen at the US/Canada border March 1, 2017, in Pittsburg, New Hampshire. Credit: DON EMMERT / Staff | AFP

Over the weekend, President Trump issued executive orders heaping significant additional tariffs on America’s biggest trading partners, Canada, China, and Mexico.

To justify the tariffs—”a 25 percent additional tariff on imports from Canada and Mexico and a 10 percent additional tariff on imports from China”—Trump claimed that all partners were allowing drugs and immigrants to illegally enter the US. Declaring a national emergency under the International Emergency Economic Powers Act, Trump’s orders seemed bent on “downplaying” the potential economic impact on Americans, AP News reported.

But very quickly, the trade policy sparked inflation fears, with industry associations representing major US firms from many sectors warning of potentially derailed supply chains and spiked consumer costs of cars, groceries, consumer technology, and more. Perhaps the biggest pain will be felt by car buyers already frustrated by high prices if car prices go up by $3,000, as Bloomberg reported. And as Trump eyes expanding tariffs to the European Union next, January research from the Consumer Technology Association showed that imposing similar tariffs on all countries would increase the cost of laptops by as much as 68 percent, game consoles by up to 58 percent, and smartphones perhaps by 37 percent.

With tariffs scheduled to take effect on Tuesday, Mexico moved fast to negotiate a one-month pause on Monday, ABC News reported. In exchange, Mexico promised to “reinforce” the US-Mexico border with 10,000 National Guard troops.

The pause buys Mexico a little time to convince the Trump administration—including Secretary of State Marco Rubio, Treasury Secretary Scott Bessent, and potentially Commerce Secretary nominee Howard Lutnick—to strike a “permanent” trade deal, ABC News reported. If those talks fall through, though, Mexico has indicated it will retaliate with both tariff and non-tariff measures, ABC News reported.

Even in the best-case scenario where no countries retaliate, the average household income in 2025 could drop by about $1,170 if this week’s new tariffs remain in place, an analysis from the Budget Lab at Yale forecast. With retaliation, average income could decrease by $1,245.

Canada has already threatened to retaliate by imposing 35 percent tariffs on US goods, although that could change, depending on the outcome of a meeting this afternoon between Trump and outgoing Prime Minister Justin Trudeau.

Currently, there’s seemingly tension between the Trump administration and Trudeau, however.

On Saturday, Trudeau called Trump’s rationale for imposing tariffs on Canada—which Trudeau noted is responsible for less than 1 percent of drugs flowing into the US—”the flimsiest pretext possible,” NBC News reported.

This morning, the director of the White House’s National Economic Council, Kevin Hassett, reportedly criticized Canada’s response on CNBC. While Mexico is viewed as being “very, very serious” about Trump’s tariffs threat, “Canadians appear to have misunderstood the plain language of the executive order and they’re interpreting it as a trade war,” Hassett said.

On the campaign trail, Trump promised to lower prices of groceries, cars, gas, housing, and other goods, AP News noted. But on Sunday, Trump clearly warned reporters while boarding Air Force One that tariffs could have the opposite effect, ABC News reported, and could significantly worsen inflation the longer the trade policy stands.

“We may have short term, some, a little pain, and people understand that, but, long term, the United States has been ripped off by virtually every country in the world,” Trump said.

Online shoppers, car buyers brace for tariffs

In addition to imposing new tariffs on these countries, Trump’s executive orders also took aim at their access to the “de minimus” exemption that allows businesses, including online retailers, to send shipments below $800 into the US without being taxed. That move could likely spike costs for Americans using popular Chinese retail platforms like Temu or Shein.

Before leaving office, Joe Biden had threatened in September to alter the “de minimus” rule, accusing platforms like Temu or Shein of flooding the US with “huge volumes of low-value products such as textiles and apparel” and making “it increasingly difficult to target and block illegal or unsafe shipments.” Following the same logic, it seems that Trump wants to exclude Canada, China, and potentially Mexico from the duty-free exemption to make it easier to identify illegal drug shipments.

Temu and Shein did not respond to Ars’ request to comment. But both platforms in September told Ars that losing the duty-free exemption wouldn’t slow their growth. And both platforms have shifted business to keep more inventory in the US, CNBC reported.

Canada is retaliating, auto industry will suffer

While China has yet to retaliate to defend such retailers, for Canada, the tariffs are considered so intolerable that the country immediately ordered tariffs on beverages, cosmetics, and paper products flowing from the US, AP News reported. Next up will be “passenger vehicles, trucks, steel and aluminum products, certain fruits and vegetables, beef, pork, dairy products, aerospace products, and more.”

If the trade wars further complicate auto industry trade in particular, it could hurt US consumers. Carmakers globally saw stocks fall on expectations that Trump’s tariffs will have a “profound impact” on the entire auto industry, CNBC reported. And if tariffs expand into the EU, an Oxford Economics analysis suggested, the cost of European cars in the US market would likely increase while availability decreases, perhaps crippling a core EU market and limiting Americans’ choice in vehicles.

EU car companies are already bracing for potential disruptions. A spokesperson for Germany-based BMW told CNBC that tariffs “hinder free trade, slow down innovation, and set a negative spiral in motion. In the end, they are detrimental to customers, making products more expensive and less innovative.” A Volkswagen spokesperson confirmed the company was “counting on constructive talks between the trading partners to ensure planning security and economic stability and to avoid a trade conflict.”

Right now, Canada’s auto industry appears most spooked by the impending trade war, with the president of Canada’s Automotive Parts Manufacturers’ Association, Flavio Volpe, warning that Canada’s auto sector could “shut down within a week,” Bloomberg reported.

“At 25 percent, absolutely nobody in our business is profitable by a long shot,” Volpe said.

According to Bloomberg, nearly one-quarter of the 16 million cars sold in the US each year will be hit with duties, adding about $60 billion in industry costs. Seemingly the primary wallet drain will be car components that cross the US-Canada and US-Mexico borders “as many as eight times during production” and, should negotiations fail, could be getting hit with tariffs both ways. Tesla, for example, relies on a small parts manufacturer in Canada, Laval Tool, to create the molds for its Cybertruck. It already costs up to $500,000 per mold, Bloomberg noted, and since many of the mold components are sourced from Canada currently, that cost could go up at a time when Cybertruck sales already aren’t great, InsideEVs reported.

Tariffs “necessary”

William Reinsch, senior adviser at the Center for Strategic and International Studies and a former US trade official, told AP News that Trump’s new tariffs on raw materials disrupting the auto industry and others don’t seem to “make much economic sense.”

“Historically, most of our tariffs on raw materials have been low because we want to get cheaper materials so our manufacturers will be competitive … Now, what’s he talking about? He’s talking about tariffs on raw materials,” Reinsch said. “I don’t get the economics of it.”

But Trump has maintained that tariffs are necessary to push business into the US while protecting national security. Industry experts have warned that hoping Trump’s tariffs will pressure carmakers to source all car components within the US is a “tough ask,” as shifting production could take years. Trump seems unlikely to back down any time soon, instead asking already cash-strapped Americans to be patient with any rising costs potentially harming businesses and consumers.

“We can play the game all they want,” Trump said.

But to countries threatening the US with tariffs in response to Trump’s orders, it likely doesn’t feel like a game. According to AP News, the Ministry of Commerce in China plans to file a lawsuit with the World Trade Organization for the “wrongful practices of the US.”

Photo of Ashley Belanger

Ashley is a senior policy reporter for Ars Technica, dedicated to tracking social impacts of emerging policies and new technologies. She is a Chicago-based journalist with 20 years of experience.

Tariffs may soon spike costs of cars, household goods, consumer tech Read More »

trump-can-save-tiktok-without-forcing-a-sale,-bytedance-board-member-claims

Trump can save TikTok without forcing a sale, ByteDance board member claims

TikTok owner ByteDance is reportedly still searching for non-sale options to stay in the US after the Supreme Court upheld a national security law requiring that TikTok’s US operations either be shut down or sold to a non-foreign adversary.

Last weekend, TikTok briefly went dark in the US, only to come back online hours later after Donald Trump reassured ByteDance that the US law would not be enforced. Then, shortly after Trump took office, he signed an executive order delaying enforcement for 75 days while he consulted with advisers to “pursue a resolution that protects national security while saving a platform used by 170 million Americans.”

Trump’s executive order did not suggest that he intended to attempt to override the national security law’s ban-or-sale requirements. But that hasn’t stopped ByteDance, board member Bill Ford told World Economic Forum (WEF) attendees, from searching for a potential non-sale option that “could involve a change of control locally to ensure it complies with US legislation,” Bloomberg reported.

It’s currently unclear how ByteDance could negotiate a non-sale option without facing a ban. Joe Biden’s extended efforts through Project Texas to keep US TikTok data out of China-controlled ByteDance’s hands without forcing a sale dead-ended, prompting Congress to pass the national security law requiring a ban or sale.

At the WEF, Ford said that the ByteDance board is “optimistic we will find a solution” that avoids ByteDance giving up a significant chunk of TikTok’s operations.

“There are a number of alternatives we can talk to President Trump and his team about that are short of selling the company that allow the company to continue to operate, maybe with a change of control of some kind, but short of having to sell,” Ford said.

Trump can save TikTok without forcing a sale, ByteDance board member claims Read More »

china’s-plan-to-dominate-legacy-chips-globally-sparks-us-probe

China’s plan to dominate legacy chips globally sparks US probe

Under Joe Biden’s direction, the US Trade Representative (USTR) launched a probe Monday into China’s plans to globally dominate markets for legacy chips—alleging that China’s unfair trade practices threaten US national security and could thwart US efforts to build up a domestic semiconductor supply chain.

Unlike the most advanced chips used to power artificial intelligence that are currently in short supply, these legacy chips rely on older manufacturing processes and are more ubiquitous in mass-market products. They’re used in tech for cars, military vehicles, medical devices, smartphones, home appliances, space projects, and much more.

China apparently “plans to build more than 60 percent of the world’s new legacy chip capacity over the next decade,” and Commerce Secretary Gina Raimondo said evidence showed this was “discouraging investment elsewhere and constituted unfair competition,” Reuters reported.

Most people purchasing common goods don’t even realize they’re using Chinese chips, including government agencies, and the probe is meant to fix that by flagging everywhere Chinese chips are found in the US. Raimondo said she was “fairly alarmed” that research showed “two-thirds of US products using chips had Chinese legacy chips in them, and half of US companies did not know the origin of their chips including some in the defense industry.”

To deter harms from any of China’s alleged anticompetitive behavior, the USTR plans to spend a year investigating all of China’s acts, policies, and practices that could be helping China achieve global dominance in the foundational semiconductor market.

The agency will start by probing “China’s manufacturing of foundational semiconductors (also known as legacy or mature node semiconductors),” the press release said, “including to the extent that they are incorporated as components into downstream products for critical industries like defense, automotive, medical devices, aerospace, telecommunications, and power generation and the electrical grid.”

Additionally, the probe will assess China’s potential impact on “silicon carbide substrates (or other wafers used as inputs into semiconductor fabrication)” to ensure China isn’t burdening or restricting US commerce.

Some officials were frustrated that Biden didn’t launch the probe sooner, the Financial Times reported. It will ultimately be up to Donald Trump’s administration to complete the investigation, but Biden and Trump have long been aligned on US-China trade strategies, so Trump is not necessarily expected to meddle with the probe. Reuters noted that the probe could set Trump up to pursue his campaign promise of imposing a 60 percent tariff on all goods from China, but FT pointed out that Trump could also plan to use tariffs as a “bargaining chip” in his own trade negotiations.

China’s plan to dominate legacy chips globally sparks US probe Read More »

china-hits-us-with-ban-on-critical-minerals-used-in-tech-manufacturing

China hits US with ban on critical minerals used in tech manufacturing

Although China’s response to the latest curbs was swift and seemingly strong, experts told Ars that China’s response to Biden’s last round of tariffs was relatively muted. It’s possible that this week’s ban on exports into the US could also be a response to President-elect Donald Trump’s threat to increase tariffs on all Chinese goods once he takes office.

Analysts warned Monday that new export curbs could end up hurting businesses in the US and allied nations while potentially doing very little to block China from accessing US tech. On Tuesday, four Chinese industry associations seemingly added fuel to the potential fire threatening US businesses by warning Chinese firms that purchasing US chips is “no longer safe,” Asia Financial reported.

Apparently, these groups would not say how or why the chips were unsafe, but the warning could hurt US chipmaking giants like Nvidia, AMD, and Intel, the financial industry publication closely monitoring China’s economy forecast said.

This was a “rare, coordinated move” by industry associations advising top firms in telecommunications, autos, semiconductors, and “the digital economy,” Asia Financial reported.

As US-China tensions escalate ahead of Trump’s next term, the tech industry has warned that any unpredictable rises in costs may end up spiking prices on popular consumer tech. With Trump angling to add a 35 percent tariff on all Chinese goods, that means average Americans could also end up harmed by the trade war, potentially soon paying significantly more for laptops, smartphones, and game consoles.

China hits US with ban on critical minerals used in tech manufacturing Read More »

us-blocks-china-from-foreign-exports-with-even-a-single-us-made-chip

US blocks China from foreign exports with even a single US-made chip

But while Commerce Secretary Gina Raimondo said that these new curbs would help prevent “China from advancing its domestic semiconductor manufacturing system” to modernize its military, analysts and “several US officials” told The Post that they pack “far less punch” than the prior two rounds of export controls.

Analysts told The Wall Street Journal that the US took too long to launch the controls, which were composed around June. As industry insiders weighed in on the restrictions, word got out about the US plans to expand controls. In the months since, analysts said, China had plenty of time to stockpile the now-restricted tech. Applied Materials, for example, saw an eye-popping 86 percent spike in net revenue from products shipped to China “in the nine months ending July 28,” the WSJ reported.

Because of this and other alleged flaws, it’s unclear how effectively Biden’s final attempts to block China from accessing the latest US technologies will work.

Beyond concerns that China had time to stockpile tech it anticipated would be restricted, Gregory Allen, the director at the Wadhwani AI Center at the Center for Strategic and International Studies, told the WSJ that these latest controls “left loopholes that Huawei and Chinese companies could exploit.”

Loopholes include failing to blacklist companies that Huawei regularly uses—with allies and American companies allegedly lobbying to exempt factories or fabs they like, such as ChangXin Memory Technologies Inc., “one of China’s largest memory chipmakers,” The Post noted. They also include failing to restrict older versions of the HBM chips and various chipmaking equipment that China may still be able to easily access, Allen said.

“These controls are weaker than what the United States should have done,” Allen told The Post. “You can make a halfway logical argument that says, ‘Sell everything to China.’ Then you can make a reasonable argument, ‘Sell very little to China.’ But the worst thing you can do is to dramatically signal your intention to cut off China’s access to tech but then have so many loopholes and such bungled implementation that you incur almost all of the costs of the policy with only a fraction of the benefits.”

US blocks China from foreign exports with even a single US-made chip Read More »

trump’s-60%-tariffs-could-push-china-to-hobble-tech-industry-growth

Trump’s 60% tariffs could push China to hobble tech industry growth


Retaliation likely, experts say

Tech industry urges more diplomacy as it faces Trump’s proposed sweeping tariffs.

Now that the US presidential election has been called for Donald Trump, the sweeping tariffs regime that Trump promised on the campaign trail seems imminent. For the tech industry, already burdened by the impact of tariffs on their supply chains, it has likely become a matter of “when” not “if” companies will start spiking prices on popular tech.

During Trump’s last administration, he sparked a trade war with China by imposing a wide range of tariffs on China imports, and President Joe Biden has upheld and expanded them during his term. These tariffs are taxes that Americans pay on restricted Chinese goods, imposed by both presidents as a tactic to punish China for unfair trade practices, including technology theft, by hobbling US business with China.

As the tariffs expanded, China has often retaliated, imposing tariffs on US goods and increasingly limiting US access to rare earth materials critical to manufacturing a wide range of popular products. And any such retaliation from China only seems to spark threats of more tariffs in the US—setting off a cycle that seems unlikely to end with Trump imposing a proposed 60 percent tax on all China imports. Experts told Ars that the tech industry expects to be stuck in the middle of the blow-by-blow trade war, taking punches left and right.

Currently, there are more than $300 billion in tariffs on Chinese imports, but notably, there are none yet on popular tech like smartphones, laptops, tablets, and game consoles. Back when Trump last held office, the tech industry successfully lobbied to get those exemptions, warning that the US economy would hugely suffer if tariffs were imposed on consumer tech. Prices on game consoles alone could spike by as much as 25 percent as tech companies coped with increasing costs from tariffs, the industry warned, since fully decoupling from China was then, and is still now, considered impossible.

Trump’s proposed 60 percent tariff would cost tech companies four times more than that previous round of tariffs that the industry dodged when Trump last held office. A recent Consumer Technology Association (CTA) study found that prices could jump even higher than previously feared if consumer tech is as heavily taxed as Trump intends. Laptop prices could nearly double, game console prices could rise by 40 percent, and smartphone prices by 26 percent.

Any drastic spike in pricing could radically reshape markets for popular tech products at a time when tariffs and political tensions increasingly block US business growth into China. Diverting resources to decouple from China could disrupt companies’ abilities to fund more US innovation, risking Americans’ access to the latest tech at affordable prices. Experts told Ars that it’s unclear exactly how China will respond if Trump’s proposed tariffs become a reality, but that retaliation seems likely given the severity and broad scope of the looming tariffs regime. While some experts speculate that China may currently have fewer options to retaliate, according to CTA VP of International Trade Ed Brzytwa, “in terms of economic tools, there’s a lot of things that China could still do.”

How would China respond to Trump’s tariffs?

Nearly everyone—tech companies, lawmakers, and even US Treasury Secretary Janet Yellen—agrees that it would be impossible to fully decouple from China, where 30 percent of global manufacturing occurs. It will take substantial time and investment to shift supply chains that were built over decades of tech progress.

For tech companies, alienating China also comes with the additional risk of stifling growth into China markets, as China seemingly runs out of obvious ways to retaliate against the US without directly targeting US businesses.

After Trump’s early round of tariffs started a US-China trade war, China retaliated with more tariffs, and nothing the Biden administration has done has seemingly eased those tensions.

According to a November report from the nonpartisan nonprofit US-China Business Council, any “escalation of US tariffs would likely trigger retaliatory measures from China,” which could include increasing tariffs on US exports.

That could hurt tech companies even more than current tariffs already are, while spiking net job losses to more than 800,000 by 2025, the council warned, making “US businesses less competitive in the Chinese market” and “resulting in a permanent loss of revenue.” In another report from 2021, the council estimated that if the US intensifies the trade war while forcing a decoupling with China, it could ultimately decrease the US real gross domestic product by $1.6 trillion over the next five years.

The US-China Business Council declined to comment on how Trump’s proposed tariffs could impact the GDP.

In May, following Biden’s latest round of tariffs—on imports like electric vehicles, semiconductors, battery components, and critical minerals used in tech manufacturing—China immediately threatened retaliation. A Chinese foreign ministry spokesperson, Wang Wenbin, confirmed that “China opposes the unilateral imposition of tariffs which violate World Trade Organization [WTO] rules and will take all necessary actions to protect its legitimate rights,” CNN reported.

Nobody is sure how China may retaliate if Trump’s sweeping tariff regime is implemented. Peterson Institute for International Economics senior fellow Mary Lovely said that China’s response to Biden’s 100 percent tariff on EVs was surprisingly “muted,” but if a 60 percent tariff were imposed on all China goods, the country “would likely retaliate.”

Tech industry strategist and founder of Tirias Research Jim McGregor told Ars that China has already “threatened to start cutting back on access to rare earth materials,” potentially limiting US access to critical components of semiconductors. Brzytwa told Ars that “the processed materials that result from those rare earths are important for manufacturing of a variety of products in the United States or elsewhere.”

China “might be running out of room to retaliate with tariffs,” Brzytwa suggested, but the country could also place more restrictions on US exports or heighten the scrutiny of US companies, possibly even limiting investments. McGregor pointed out that China could also block US access to Taiwan or stop shipments into and out of Taiwan.

“They’ve already encircled the island recently with military weaponry, so they didn’t even have to invade Taiwan,” McGregor said. “They can actually block aid to Taiwan, and with the vast majority of our semiconductors still produced there, that would have a huge impact on our industry and our economy.”

Brzytwa is worried that if China is pushed too far in a trade war, it may lash out in other ways.

“I think what we worry about as well is that whatever actions the United States undertakes become so provocative that China decides to act out outside the economic arena through other means,” Brzytwa told Ars.

What should the US be doing?

If the US wants to succeed in safeguarding US national security and tech innovation, Lovely told Congress the country must clarify “its strategic intent with respect to trade with China” and reform tariffs to align with that strategic intent.

She said that Trump’s “whole kitchen sink” approach has not worked, and rather than being strategic, Biden has been capricious in upholding and expanding on Trump’s tariffs.

“If you try to do everything, you end up doing nothing well,” Lovely told Ars. “Rather than just vilifying China (which, granted, China deserves a lot of vilification)” and “deluding” Americans into thinking tariffs are good for them, Lovely suggested, Trump should analyze “what’s the best thing for the United States?”

Instead, when Lovely shared a report in August with the Trump campaign—estimating that it would cost “a typical US household in the middle of the income distribution more than $2,600 a year” if Trump follows through on his tariff plans, which also include a 20 percent universal tariff on all imports from anywhere—Trump’s team rejected input “from so-called experts,” Lovely said.

Lovely thinks the US should commit to a long-term solution to reduce reliance on China that can be sustained through each presidential administration. That could mean working to support decarbonization efforts and raise labor standards in allied nations where manufacturing could potentially be diverted, essentially committing to build a new global value chain after the past 35 years of China’s manufacturing dominance.

“The vast majority of the world’s electronic assembly is done in China,” McGregor told Ars. And while “a lot of companies are trying to have slowly migrated some of their manufacturing out of China and trying to build new facilities, that takes decades to really shift.”

Even if the US managed to block all imports from China in a decade, Lovely suggested that “we would still have a lot of imports from China because Chinese value added is going to be embedded in things we import from Vietnam and Thailand and Indonesia and Mexico.”

“The tariff can be effective in changing these direct imports, as we’ve seen, yeah, but they’re not going to really push China out of the global economy,” Lovely told Ars.

Consequences of a lack of diplomacy

All experts agreed that more diplomacy is needed since decoupling is impossible, especially in the tech industry, where isolating China has threatened to diverge standards and restrict growth into China markets that could spur US innovation.

“We need somebody desperately that’s going to try to bridge barriers, not create them,” McGregor told Ars. “Unfortunately, we have nobody in Washington that appears to want to do that.”

Choosing diplomacy over tariffs could also mean striking trade agreements to curtail China’s unfair trade practices that the US opposes, such as a deal holding China accountable to WTO commitments, Brzytwa told Ars.

But even though China’s spokesperson cited the WTO commitments in his statement opposing US tariffs last May, Brzytwa said, the US has seemingly given up on the WTO dispute settlement process, feeling that it doesn’t work because “China doesn’t fit the WTO.”

“It’s a lot of defeatism, in my view,” Brzytwa said.

Consumers will pay the costs

Brzytwa warned that if Trump deepens US-China trade tensions, it would likely cause ripple effects across the US, potentially constricting access to the best tech available today, which would result in limited productivity across industry.

Any costs of new tariffs “would be passed on to consumers, and consumers would purchase less of those products,” Brzytwa said. “In our view, that is not supportive of innovation when people are not purchasing the latest technologies that might be more capable, more energy-efficient, and might have new features in them that allow us to be more productive.”

Brzytwa said that a CTA study showed that if tariffs are imposed across the economy, all companies would have to stop everything to move away from China and into the US. That would take at least a decade, 10 times the labor force the US has now, and cost $500 billion in direct business investments, the study estimated. “And that’s before you get to environmental costs or energy costs,” Brzytwa told Ars, while noting that an alternative strategy relying on treaty allies and trading partners could cut those costs to $127 billion but not eliminate them.

“It wouldn’t happen in a way where there’s no cost increase,” Brzytwa said. “Of course, there’s going to be a cost increase.”

The hardest-hit tech companies by China tariffs so far have likely been small businesses with little chance to grow since they’re “paying more in tariff costs or they’re paying more in administrative costs, and they’re not spending money on research and development, or they’re not hiring new people, because they’re just trying to stay alive,” Brzytwa said.

Lovely has testified three times to Congress and plans to continue stressing what the negative impacts “might be for American manufacturers for consumers” from what she thinks are “rather extreme moves” expanding tariffs without clear purpose under both Trump and Biden.

But while Congress controls the power to tax, it’s the executive branch that controls foreign policy, and in this highly politicized environment, even well-researched studies done by nonpartisan civil servants can’t be depended on to influence presidents who are determined to use tariffs to appear strong against China, Lovely suggested.

On the campaign trail, both candidates appeared to be misleading Americans into thinking that tariffs “are good for them,” Lovely said. If Trump’s tariffs get implemented once he’s sworn back in, that will only make it that much worse if the rug gets yanked from under them and Americans are suddenly hit with higher prices on their favorite devices.

“It’s going to be like shock therapy, and it’s not going to be pleasant,” Lovely told Ars.

Photo of Ashley Belanger

Ashley is a senior policy reporter for Ars Technica, dedicated to tracking social impacts of emerging policies and new technologies. She is a Chicago-based journalist with 20 years of experience.

Trump’s 60% tariffs could push China to hobble tech industry growth Read More »