Forget the RAM crisis: New US tariff proposal could make your next smartphone even more expensive

The United States government is contemplating a new set of tariffs that could extend beyond chips to directly impact consumer electronics such as laptops, gaming consoles, and smartphones, potentially increasing the cost of these devices further. While the current focus is on foreign chips, the administration is also considering tariffs on finished consumer electronics, which could include smartphones, smartwatches, earbuds, and more.

Previous trade disputes have already led to complications for retailers, with some offering refunds to affected customers, but this proposed move is more comprehensive, aiming at the core components that power modern hardware. A report from Politico indicates that the Trump administration is considering widening the scope of existing duties to include devices manufactured with these chips.

The potential impact could extend to smartphones and associated accessories. While some relief might be offered to foreign companies that invest in U.S. manufacturing, the process of setting up these facilities can take years, suggesting that immediate price relief may not be feasible. As demand for RAM and storage continues to rise due to AI-driven applications, the combination of tariffs and increased costs could lead to higher retail prices for consumers.