US tech industry predicts record sales as threat of tariffs looms
The North American Consumer Technology Association (CTA) forecasts sales of $537 billion in 2025. According to the association, owner and producer of CES, tariffs could reduce US consumers' purchasing power for tech by up to $143 billion.
Announced at the CES Tech Trends to Watch in Las Vegas, USA, the Consumer Technology Association (CTA) projects record retail revenues as the US 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, says the organisation. 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%.
Tech sector as America’s economic engine
"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 prioritise 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 US industries. U.S trade policy should protect consumers and help American businesses succeed globally."
CTA’s Us 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.
About the Consumer Technology Association (CTA)
CTA is North America’s largest technology trade association. According to the association, its members are the world’s leading innovators – from startups to global brands – helping support more than 18 million American jobs. CTA owns and produces CES in Las Vegas, USA.
Caption: Total industry revenues, CTA US consumer technology one-year industry forecast. (Image source: CES)
Source: CES