Trump’s tariffs will expand the digital division

Like President Donald Trump Tariff Turmoil continues, it is becoming increasingly clear that this unpredictability in the US will create economic stress for the American Companies and residentsS But as with other types of commercial turbulence, the people who will be hit the most are those with a lower income.

Trump The tariff policy for goods imported into the United States devotes some exceptions to smartphones and small electronics, but experts say the prices of these devices will still rise as the companies that produce them will lead to additional costs in their supply chains as the trade war continues to escalate.

And although many buyers shopping for a first-class device can be able to afford an additional $ 100 or $ 200, glued to the price of a phone or laptop, which are already sold for over $ 1,000, those who buy personal technologies at a lower price will feel more pressing.

“The challenge is that people who buy low prices products are often the ones that are most sensitive to prices and are most distributed by that,” says Sean Duravak, chief economist of the Electronics Trade Association IPCS “Overall, products at a lower price have thinner margins and this applies to almost all categories.”

Cheaper carsEntrance level smartphones and budget laptops and tablets make a less profit per unit than their first-class counterparts. This means that, unlike high-end laptops and laptops or play computers, companies need to sell more than cheaper devices to make the effort to build them. If the extra costs added by the tariffs causes people to buy less things, it means logic behind By selling them in the US There is less sense at all.

“The logic is quite simple: the products at a lower price compete more strongly in the price that presses margins,” says Dubravak. “At the same time, they are usually produced in larger volumes, and the business model often relies on scale to compensate for thin margins.”

The President is gone Backward and Fort to which the devices will be released from tariffs. No matter how the Trump rates are in the end, which appreciates he appreciates desecalatior who cost companies are able to pull their way out ofWhat is likely to happen independently is that all this uncertainty can lead to a broader increase in inflation throughout the economy. The things they get more expensive parents more things that get expensive.

Anshel SAG, Chief Analyzer of Moor Insights & Strategy He says inflation in this economy can be almost impossible to overturn.

“My biggest fear is that as this will increase inflation, it will create a significant drain of people’s income and consumption for disposable people as a result of these policies,” says SAG. “Even if many of these things are smoothed and the agreements have been reached, it will still lead to higher inflation and a lower purchasing power for the consumer.”

Of course, the increasing price of consumer technology is not the only force causing financial instability among the more objective Americans. Trump is also designated for even more budget cuts that would process and Defund Federal Housing Programs For people with low income. In April the administration Thousands of employees cleared from the US Department of Health and Human Services, among them Whole employees From the low -income energy aid program, an agency that literally maintains lights for some low -income families. Since January abbreviations of thousands of people beyond social security., Veteran’s shareand USAID departments could slide down The health, well -being and purchase of people who cannot afford to manage without these services.