Tariffs could hit tech devices to tune of $3.2B

next smart speaker, fitness tracker or smartwatch you buy will likely cost more if another wave of products gets hit with tariffs as part of the U.S.China trade war.

Additional tariffs being considered on imports from China could cause consumers to pay between $1.6 billion and $3.2 billion more in 2019 for electronic products such as smart speakers, smartwatches and other Bluetooth-enabled devices, according to a new study published Friday by the Consumer Technology Association.

Last month, President Donald Trump slapped tariffs on $34 billion worth of Chinese goods, and another $16 billion worth are to take effect next week. Additional products are being considered – including tech products and parts – after Trump threatened tariffs on all Chinese imports, valued at $500 billion.

So far, the trade fight has caused companies such as Harley Davidson to consider moving some manufacturing from the U.S. and other companies to lay off some workers since China increased tariffs in response.

But the next series could directly hit consumers in the pocketbook, with “a substantial negative impact,” the CTA said. Tariffs of 10 to 25 percent would boost prices on popular personal elecprove tronics and other services.

Many of those products connect users to the internet and help them stay connected to others. The list of connected devices facing potential increases of 8.5 to 22 percent includes broadband modems, smart speakers, smartwatches and other smart appliances, as well as Bluetooth-enabled products such as wireless headphones and fitness trackers. As a result, all connected devices, regardless of where manufactured, would likely cost 3.2 to 6.2 percent more, the study said. That could mean a $4 to $8 increase in the price of a fitness tracker or smart speaker.

The Trump administration has engaged China in the tariff battle to imThat the market for U.S. exporters. Supporters say the plan could work, as the U.S. has a strong economy and low unemployment rates. But others are concerned about the potential cascading effect of tariffs, such as lower sales and, in turn, job cuts.

“Foreign governments don’t pay the cost of tariffs, Americans do,” said Gary Shapiro, CEO and president of the CTA, an Arlington, Virginia-based trade group representing device manufacturers, software developers and other tech companies. “The danger we face – the unintended consequence – is that tariffs mean Americans will pay more for all the devices they use every day to access the internet.”