Houston Chronicle

Trump’s China trade war pulls consumer tech gadgets into fray

- By Michael Liedtke and Lorin Eleni Gill

SAN FRANCISCO — The prices of headphones, speakers, high-tech lighting and internet service could all go up if the U.S. trade war with China continues.

The Trump administra­tion's hit list of Chinese products facing import taxes includes key components used in gadgets that can be wirelessly operated through a smartphone or another device.

The tariffs also will nail networking equipment that makes the internet work.

It remains unclear how much prices might rise, partly because the next round of tariffs won't be imposed until the fall.

The technology industry's broad reach and financial heft also complicate­s the calculatio­n.

Apple, Google, Microsoft and other major technology companies have such diversifie­d product lines and deep pockets that they simply could absorb the additional costs triggered by the tariffs rather than pass them along to consumers.

But even the richest companies will usually only shoulder an ongoing tax such as a tariff for so long before raising prices, said Timothy Sturgeon, a senior research affiliate at MIT's industrial performanc­e center.

Those prices will eventually hit consumers, Sturgeon predicted.

“Just about any wireless accessory made for a phone is going to be affected,” JLab CEO Win Cramer said.

 ?? Mark Tenally / Associated Press ?? The price of Beats headphones like these could soar when the next round of Chinese tariffs hits the U.S., officials say.
Mark Tenally / Associated Press The price of Beats headphones like these could soar when the next round of Chinese tariffs hits the U.S., officials say.

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