Trade Wars Between U.S. And China Has Widespread Impacts On Tech

Posted: Jun 1 2019, 9:00am CDT | by , Updated: Jun 1 2019, 9:03am CDT , in Technology News

 

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Trade Wars between U.S. and China Has Widespread Impacts on Tech

It's not just Huawei.

It would seem that the fears of an all-out trade war between the United States and China is starting to take shape, as new tariffs and trade restrictions on goods are being introduced. The effects of these tariffs from both sides are already beginning to cause a surge in prices, and it does not appear to be ending any time soon. With that in mind, let’s take a look at some of the areas in which tariffs are going to have a major impact on costs to consumers.

Chinese Phones and U.S. Buyers: A Tech Nightmare

The biggest problem that is emerging from the technological standpoint of the trade war and resulting tariffs can be seen in the phones. One of the things that helped to kick off the hostility between China and the U.S. was the discovery that Huawei phones were collecting data from their users in the latter country. The extent of that data collection in terms of what it is being used for is unknown, but the preliminary results were enough to create the present situation.

The result was a ban on Huawei phones and other products in the United States, which kicked off a halt in sales for the company. This also made a lot of people in the United States rethink their prior purchases and what the foreign country was tracking. Germany also banned Huawei products, solidifying the U.S. position, but also resulting in China beginning to blacklist certain American products.

The bottom line here is that phone sales are going to be very confusing and potentially expensive in the months to come as more people shift gears on the phones that they choose to buy.

Video Game Consoles and Other Favored Technology

Another important area of technological impact from the tariffs and trade disputes can be seen in video games. Specifically, video game consoles are looking at a 25% general import tax coming from China, which could affect the industry in many different ways. With new consoles on the horizon from PlayStation and Xbox brands, the price of a new system could skyrocket if the disputes are not ended.

With that being said, the fact remains that that other tech pieces are facing price increases as well. Tablets, smart watches, and many of the monitors that are used in such pieces are going to be taxed extra one way or the other. Unless the disputes are solved quickly, these prices are going to have a big impact towards the end of the year.

All in all, technology is going to suffer under the “trade war” that is presently occurring. While phones are going to be the tech that is most stricken by tariffs or outright bans, other aspects of tech will become more expensive. This includes video game consoles, tablets, and smart watches, many of which are made in China. The complex interplay between designers, buyers, and producers has created a volatile market, but it is certain that tech will be featured during the latest and future salvos between the nations.

This story may contain affiliate links.

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The Author

<a href="/latest_stories/all/all/2" rel="author">Luigi Lugmayr</a>
Manfred "Luigi" Lugmayr () is the founding Chief Editor of I4U News and brings over 25 years experience in the technology field to the ever evolving and exciting world of gadgets, tech and online shopping. He started I4U News back in 2000 and evolved it into vibrant technology news and tech and toy shopping hub.
Luigi can be contacted directly at ml[@]i4u.com.

 

 

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