Trump's tariff plan for China would be 'devastating,' says CTA CEO Gary Shapiro.
It's a matter of basic economics.
The CES 2025 event, one of the largest technology fairs in the world, will take place in Las Vegas in less than two months. This year, the event is positioned between a historic presidential election in the United States and the arrival of a new administration that has significant trade plans, which could affect the numerous technology companies that will be present at the fair, as well as the majority of consumers in the country.
The Consumer Technology Association (CTA), a nonprofit organization behind the event that represents the interests of the industry to the U.S. government, has expressed its clear opposition to the tariffs proposed by the new administration. At a CES 2025 launch event in Manhattan, its CEO, Gary Shapiro, was outspoken about the plans of elected President Donald Trump, who is considering a blanket 20% tariff on all imported goods, and a potential special tariff of 60% on products coming from China.
Shapiro emphasized that tariffs are ultimately a tax that consumers will have to pay. In his view, tariffs are not borne by the countries involved, but fall directly on consumers. He stated that the opinion of a single economist supporting this measure, against thousands who are critical, seems irrelevant to him. He also warned that the 20% tariff that could be applied to imports from Mexico and Canada would be inflationary and detrimental to the economy.
The possible scenario of a 60% tariff on Chinese products was also described by Shapiro as "devastating." Furthermore, he explained that the effect of such tariffs would not only impact prices for consumers but would also provoke retaliations that would affect U.S. exports, which he considered harmful to the country.
Although Shapiro focuses on opposition to tariffs, he also criticized that some of the tariffs imposed during Trump's administration remained under Biden's administration, which he labeled as "bipartisan tariffs." During his first term, Trump applied tariffs worth $80 billion, and Biden maintained most of these measures.
Despite a challenging landscape, Shapiro expressed hope regarding the arrival of the new administration and noted that there has not been a significant negative impact among CES 2025 exhibitors. In fact, some entrepreneurs show optimism about a change in the White House, given that the regulatory environment under Biden has been very stringent. He cited the halt to Amazon's acquisition of iRobot as an example. However, his stance on tariffs is firm: the CTA will continue to oppose them.
