Tablet Computers
Sourcing Guide & Market Intelligence

Tariffs to escalate prices for electronics and computing equipment

• The Trump administration’s reciprocating tariffs, which will increase the tariff on all products imported from nearly all US trade partners, are set to take effect on August 7 and are likely to drive price increases across a wide range of sectors.
• The United States is highly reliant on imported electronics, communication equipment, and computing devices, having imported more than $472 billion worth of electronics in 2024, or about half of the total domestic supply. Starting August 7, imports from key computer and electronics producers such as China (54,0%), Japan (15.0%), South Korea (15.0%), Thailand (19.0%), Vietnam (20.0%), and Taiwan (20.0%) will be subject to new tariff rates. Trade deals for many countries are still being negotiated, and these rates are subject to change.
• For this reason, the US electronics industry is highly exposed to price increases and supply chain disruptions when the tariffs take effect. For example, the cost of iPhones, which are predominantly manufactured in China, could rise by as much as 43.0% in response to tariffs, according to projections by Rosenblatt Securities.
• Overall, the Yale Budget Lab anticipates tariffs will increase the average cost of computers and electronics by 18.7% in the short term.
• The tariffs exempt semiconductors, limiting the cost increases for domestic electronics manufacturers, but the lack of domestic electronics assembly capacity means that this exemption will have a limited effect.

China bans exports of rare minerals to the United States

• On December 4, China announced a ban on all exports of gallium, germanium, graphite, and antimony to the United States, escalating existing trade restrictions on these materials.
• China is the leading global producer of each of these metals, producing 98.3%, 67.9%, 62.0%, and 48.2%, respectively, of the world’s gallium, germanium, graphite, and antimony supplies, respectively.
• The United States can still access these resources from other trade partners who make up most of the remaining global supply of the impacted commodities, such as Canada, Japan, and Brazil.
• However, the loss of supply from China, the leading producer of these materials, will increase prices and supply chain risk in a range of markets that rely on the affected metals, such as the semiconductor, batteries, and solar cell markets.
• China’s export ban on these materials is in retaliation to expanded US export bans on advanced semiconductor manufacturing equipment and technologies to China announced two days prior. This ongoing trade dispute adds further uncertainty to technology markets, which are often reliant on components and materials exported from China.

The DOJ proposes Google breakup in latest tech antitrust action

• In August, Google was found guilty of operating as a monopoly and engaging in anti-competitive practices through the operation of its search engine business.
• In response to this ruling the Department of Justice (DOJ) has stated it will seek a breakup of Google’s business segments, among other similarly harsh penalties. While the actual penalty Google receives must be approved by the judge, the DOJ’s proposed penalties signal a zero-tolerance policy toward tech monopolies.
• During the last few years, the Federal government has significantly increased its enforcement actions against major technology companies in an effort to contest the high level of market share concentration in this sector.
• These actions include high-profile anti-trust lawsuits against Amazon, Apple, and Meta, in addition to the case against Google. Consequently, the results of these lawsuits could significantly affect the structure of a wide range of tech markets.