US consumer industry group warns tariffs could reduce purchasing power by up to $123b annually, hurting industry and adding to inflation

A customer shops at a Target store in Rosemead, Los Angeles County, California, the United States, on March 4, 2025. (Zeng Hui/Xinhua)

The US Consumer Technology Association (CTA) has expressed concern and opposition to US government's tariff policies in its latest statement, warning that the measures could lead American consumers to face a potential drop in purchasing power of up to $123 billion annually, in light of updated study results.

The comments were made as the trade association holds Trade Week from Tuesday to Thursday, the first-ever Trade Week bringing CTA members to Washington to share their stories on the effects of ongoing and proposed tariffs with members of Congress and the administration, according to a press release that the CTA shared with the Global Times.

The trade association, representing the $505 billion US consumer technology industry, which supports more than 18 million US jobs, said that the latest data show "the US administration tariff actions may increase prices on specific popular consumer technology products."

Drawing on data from Trade Partnership Worldwide, the updated analysis suggested that US consumers face a potential drop in purchasing power of up to $123 billion annually if current and announced new tariffs take effect and are fully passed through to retail prices on 10 everyday technology products, said the CTA.

This update builds on earlier research from January 2025 and September 2024 to reflect recent actions by the new administration, including baseline tariffs of 10 percent on all imports and additional proposed tariffs ranging from 11 percent to 50 percent on trading partners.

"Tariffs are taxes paid by Americans," said Gary Shapiro, CEO and vice chair of the CTA. "Higher tariffs don't just affect businesses, start-ups and founders - they're a pocketbook issue for American families, potentially raising the cost of the tech Americans love and rely on daily. While this administration is rightly focused on jobs, data show that these tariffs are more likely to hurt industry and add to inflation, rather than help Main Street America thrive."

In addition to the drop in American purchasing power, the association warned that the estimated economic losses of the tariffs "could reach as much as $69 billion annually, even after accounting for potential reshoring and new domestic production."

For every $1 in gains to domestic producers, consumers may lose up to $16 in spending power, added the association.

"These new figures show sweeping tariff policies could increase consumer costs and hurt the broader US economy," said Ed Brzytwa, CTA vice president for international trade.

The CTA has repeatedly voiced its concern over US tariffs. In a previous statement sent to the Global Times in March, Gary Shapiro, CEO and vice chair of the CTA, warned that the tariffs "will fuel inflation and hurt the US economy."

"Tariffs are taxes on Americans and American businesses, not foreign governments or companies. Adding tariffs on imports from Canada, Mexico and China will raise prices for Americans at a time when inflation and affordability is their top concern," Shapiro said.