Buying a handset from the best Android phones list could cost more—way more—in the future.
And it's not about the ongoing RAMpocalypse (the RAM and storage chip shortage), it's about US tariffs and big shots in politics.
I can already hear the "I am never going to financially recover from this" crowd after buying a flagship next year.
Thankfully, nothing is etched in stone yet.
A looming disaster?
Chinese flagships are already difficult to get in the US. | Image by PhoneArena
Per the latestreports, the US administration could impose tariffs on devices like smartphones and smartwatches and everything in between that has a foreign-made chip in it.
So, instead of slapping tariffs solely on chips per se, Trump's government is searching for ways to put taxes on imports for the device itself. Depending on how the new tariff proposition is constructed, this could affect laptops, gaming consoles, smartphones and pretty much anything else.
Foreign manufacturers may be able to secure exemptions or reduced exposure to the tariffs based on how much they invest in the US chip-producing industry. The idea is clearly aimed at encouraging companies to expand domestic chip production. The obvious problem, however, is that semiconductor plants are not something companies can build overnight. That's not like renaming Lake Ontario to Lake America.
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These plants and fabs require years of construction and billions of dollars. What that means is that chipmakers could still have to endure tariffs for some time.
They believe that they're making the right call here
The White House, meanwhile, has defended using trade policy as a way to strengthen the domestic semiconductor industry. Spokesperson Kush Desai says that reshoring semiconductor manufacturing is "a top priority for President Trump".
Nothing is clear
It's not that anyone has a clear plan ahead, as it seems. The report notes that one idea under consideration would set separate tariff rates and quotas for individual countries, with country-specific guidance. So, for example, if a given country hasn't helped Trump bomb another country, maybe it'll get heavier tariffs.
Anyway, the new tariffs could have a phase-in period and the framework could still be substantially revised in the coming weeks or months.
Given that Asia is where many of the chips are being produced, this may mean Americans could end up paying more—not just because of the chip shortage—for their next smartphone.
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Sebastian is one of PhoneArena’s senior opinionators. A veteran news writer with almost 20 years of experience in media and technology, he not only covers all the hot news about Galaxies and iPhones, but often provides hot takes on industry trends. He’s fascinated with camera-focused flagships from the likes of Oppo and Vivo, as well as foldable phones.
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