Higher gadget prices loom as US tariffs hit tech

MANILA, Philippines — Consumers should brace for more expensive computer and hardware products starting this quarter, impacting economies like the Philippines that are heavily importing technological products and solutions.

International Data Corp. (IDC) research vice president Jean Philippe Bouchard said buyers have to assume that tech giants hit by new US tariffs would increase prices as early as this quarter.

Bouchard said manufacturers are still studying their next move on how to navigate a global environment where the world’s largest economy is taxing imports higher.

Bouchard said manufacturers are checking on their inventory to see if their supply is sufficient to cover orders prior to the imposition of new tariffs. Some are looking for rerouting opportunities to relocate their factories in countries slapped with lower duties.

The largest tech players are also trying to strike a compromise deal with the White House in the hope of securing special rates. In spite of all these efforts, Bouchard warned that the tech market is scrambling in uncertainty, and this is enough to elevate retail prices.

As such, Bouchard believes the demand for tech items, especially for personal computers (PCs), would go down globally as a result of the volatility.

“When it comes to hardware like PCs and similar devices, we still maintain the view that most, if not all, price increases will get passed directly to the consumer,” Bouchard said.

“Evidently, commercial demand (of PCs) remained strong in the first quarter, but the new round of US tariffs announced on April 2 could have a direct inflationary impact on the PC market that could result in delayed IT spending for the remainder of the year,” he added.

In 2024, Asia-Pacific posted a two percent drop in PC imports because China reduced its purchases. However, the Philippines is one of the few economies in the region that increased its PC orders to supply for its education and private sectors.

Based on data from the IDC, PC shipments worldwide expanded by five percent to 63.2 million. Bouchard said this may no longer be sustained for the rest of the year after US President Donald Trump hit dozens of countries with higher tariffs.

The Philippines, a long-time trading ally of the US, was imposed with a 17-percent tariff, which is still one of the lowest in Southeast Asia.

Trump suspended the higher tariffs for 90 days on pressure from global investors and leaders, but proceeded to punish China with a 125-percent duty.