Donald Trump returns to the White House on Jan. 20, and some of his campaign promises could shake things up in the tech world. His plans are subject to change, but they may translate to higher prices in the US. Here a few things you may want to do before Inauguration Day.
1. Buy Pricey Tech
Trump has proposed a 10% tariff on all foreign imports and another 60% on Chinese imports, which could raise the cost of items for US consumers and send inflation soaring as businesses pass those fees onto buyers. Laptops, for example, could be 45% more expensive, according to the Consumer Technology Association (CTA), a trade group that represents major tech companies.
(Credit: CTA)
CTA also projects that smartphone prices could jump 25.8%, TVs could get 9% more expensive, and gaming consoles could see a 40% price bump, among other categories.
Large parts of the US economy and global supply chain now rely on China, where many of our computers, phones, TVs, and games are made. It also produces 65% of the world’s lithium, which is used in batteries for everything from EVs to iPhones. Blanket tariffs on China would likely accelerate inflation, though tariffs on specific materials could have less of an impact.
Container ships docked at the Port of Oakland (Photo by Justin Sullivan/Getty Images)
We already got a taste of this in 2018 when the Trump administration imposed a 10% duty on many PC components made in China. That later rose to 25%. In response, some vendors moved manufacturing away from China to areas such as Taiwan and Vietnam but other companies, particularly smaller vendors, raised prices to compensate for the added costs.
When Biden took office, Nvidia, HP, and Zotac urged the US to exclude their products from the Trump-era tariffs, citing the lack of electronics manufacturing outside of China. In 2022, the Biden administration lifted the tariffs on GPUs and motherboards, but only through a temporary exclusion process which US Trade Representative this year elected to maintain. Nvidia and AMD are now reportedly rushing to ship next-gen GPUs from China to the US ahead of Jan. 20.
2. Buy an Electric Vehicle
Trump has been all over the map on electric vehicles, from telling EV supporters to “rot in hell” in late 2023 to saying he’s fine with them as long as the US continues to make gas-powered cars. But he’s reportedly planning to axe the $7,500 EV tax credit, Reuters reports.
Tesla showroom advertises the tax credit. (Credit: Lindsey Nicholson/UCG/Universal Images Group via Getty Images)
In May, the Biden administration hiked tariffs on Chinese electric vehicles from 25% to 100%, and increased the tariff rate on lithium-ion EV batteries from China from 7.5% to 25%. The idea was “to expand domestic production capacity of advanced batteries and battery materials [when] China currently controls over 80% of certain segments of the EV battery supply chain,” the White House said. To qualify for the tax credit, for example, an automaker must produce a certain percentage of its cars’ battery components in the US.
As MIT Technology Review notes, “Trump’s proposed 60% to 100% tariffs would far exceed the ones currently set on batteries.” That could translate to higher prices on vehicles that use Chinese batteries, like some Tesla models. (Elon Musk, now a Trump advisor, insists losing the EV tax credit would only hurt Tesla “slightly” but devastate his EV rivals.)
3. Brace for Power Outages and Higher Utility Bills?
Trump has also suggested he may place a 25% tax on all goods imported from Canada and Mexico as a punishment for what he says are “Crime and Drugs at levels never seen before.” (US national violent crime dropped 3% in 2023 compared to 2022, the FBI says.)
Ontario’s Premier said his province may cut energy supplies to the US as a result, something the deputy prime minister of Canada has also hinted could happen nationally. This could cause power shortages or higher utilities bills in some areas as regions scramble to find cheaper power sources or build new connections. Ontario supplies power to Michigan, New York, and Wisconsin, to name a few. British Columbia also sends electricity to California, Washington, and Oregon, while Manitoba has been sending electricity to Minnesota in recent years.
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Canada also imports electricity from the US, so the two countries may simply choose to keep their own electricity going forward instead of exporting it. Or, US states may try to trade electricity with each other, as California imports more electricity from BC than it exports, while Washington state does the opposite. About 85% of US electricity imports and 60% of crude oil imports are from Canada, though, so even if power outages don’t happen, other economic impacts and grid shakeups are possible if these tariffs go into effect.
4. Invest in Solar Panels
While the cost of solar panels has decreased by about 50% in the past 10 years and could continue to drop, more tariffs were added on some solar companies exporting from China via southeast Asia in June. In December, President Biden added more tariffs to Chinese solar panel components that will take effect on Jan. 1. Trump also imposed solar tariffs in his first term, so considering he’s already planning to add tariffs on Chinese goods, additional tariffs on solar and renewable energy tech wouldn’t be a surprising move.
(Photo by Michael P. Farrell/Albany Times Union via Getty Images)
Trump has also previously dismantled legislation to address climate change and recently picked a pro-fossil fuel energy secretary, meaning Trump is less likely to support the renewable energy industries. Given this, he could also cancel the federal solar panel tax credit, meaning solar panels would get more expensive overall for home and business owners.
5. Get a VPN and E2E Encrypted Apps
If you’re worried about privacy or increased surveillance under Trump 2.0, a VPN is a good place to start, even if you don’t think you need it. For example, the US has had an abortion surveillance program since 1969, but under a Republican Trump administration, abortion-seekers may be increasingly tracked and surveilled.
Deleting a period-tracker app is not enough, according to some experts. Instead, use end-to-end encryption for any abortion-related messages, phone calls, emails, cloud storage, and files. Some states have even enacted laws that bar abortion-seekers from traveling to another state, so be aware of your current state’s laws and how your devices track your location.
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About Kate Irwin
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