U.S. tech industry forecasts record sales, tariff threats loom
Sunday, January 5th, 2025
U.S. Tech Industry Forecasts Record Sales, Tariff Threats Loom
- Consumer Technology Association forecasts $537 billion sales in 2025; tariffs could cut U.S. consumer purchasing power of tech up to $143 billion
LAS VEGAS — Announced at the agenda-setting CES® 2025 Tech Trends to Watch, the Consumer Technology Association (CTA)® projects record retail revenues as the U.S. consumer technology industry grows 3.2% over 2024 to $537 billion in 2025. This signals growth in consumer spending on tech products and services, according to CTA’s U.S. Consumer Technology One-Year Industry Forecast.
Meanwhile, updated CTA research shows the tech products consumers love and rely upon, including smartphones and laptops, are threatened by President-elect Trump’s tariff proposals. CTA’s updated report: “How Proposed Trump Tariffs Increase Prices for Consumer Technology Products” shows:
- Tariffs on technology products could lead to a $90-$143 billion decline in U.S. consumer purchasing power.
- Purchases of laptops and tablets could decline by as much as 68%, consumption of gaming consoles could decline by as much as 58% and consumption of smartphones could decline by up to 37%.
“The tech sector is America’s economic engine, driving global innovation and job creation,” said CTA CEO Gary Shapiro. “Our positive forecast reflects the industry’s strength, but proposed tariffs threaten the deflationary power of tech in the global economy. Tariffs are a tax on American businesses and consumers. We urge the incoming administration and Congress to prioritize an Innovation Agenda that fosters growth.”
“The incoming administration must address how tariffs impact American businesses and consumers,” said CTA Vice President of Trade Ed Brzytwa. “Retaliation from our trading partners raises costs, disrupts supply chains, and hurts the competitiveness of U.S. industries. U.S. trade policy should protect consumers and help American businesses succeed globally.”
Total industry revenues, CTA U.S. Consumer Technology One-Year Industry Forecast
Methodology
CTA’s U.S. Consumer Technology One-Year Industry Forecast is updated twice a year, informed by qualitative and quantitative input from CTA members, industry experts and third-party data sources.
How The Proposed Trump Tariffs Increase Prices for Consumer Technology Products was commissioned by CTA and undertaken by Trade Partnership Worldwide LLC (TPW). TPW employed a modeling strategy that enables the researchers to estimate the cross-country impacts of changes in trade policy (applying increased tariff rates on top of existing tariff rates) for detailed product categories.