As US tariffs on imported phone components rise, repair shops prepare for a surge in costs, forcing consumers to weigh the economics of repairing versus replacing their devices.
Donald Trump‘s tariffs are likely to drive up the cost of smartphone repairs because of the globalized supply chain that produces the devices’ components. The vast majority of parts for popular phones from Apple and Samsung are produced outside of the US.
Tariffs are taxes imposed on imported goods by a country's government.
They can be used to protect domestic industries, raise revenue, or retaliate against other countries' trade practices.
Tariffs can increase the cost of imported goods for consumers and businesses, making them less competitive in global markets.
The World Trade Organization (WTO) regulates tariffs under international law, setting limits on their use as a trade barrier.
In 2018, the US imposed tariffs on Chinese imports worth $50 billion, sparking a trade war between the two nations.
iFixit’s director of sustainability, Elizabeth Chamberlain, expects that repair shops will have to increase their own parts prices due to the tariffs. While repairs may still be more economical than buying new, the cost of parts is expected to rise. ‘Chamberlain notes that a single part, even at a higher price, will remain cheaper than a complete device.’
The increasing complexity of smartphones has led to a significant rise in repair demand.
According to a study, the global smartphone repair market is projected to reach $14.3 billion by 2025.
Faulty batteries, cracked screens, and water damage are among the most common issues requiring repairs.
The average cost of repairing a smartphone is around $100-$200, depending on the type of issue and device model.
Repair shops are preparing for the prices of imported parts to go up. A manager of a national repair chain anticipates a 20% increase in part costs. Dan Fernando, owner of Technesia, an independent repair shop, has already seen price fluctuations for certain parts, including hard drives.
With new devices becoming pricier, secondhand device marketplaces like Swappa present a third option to concerned customers. The site’s founder and CEO, Ben Edwards, expects that tariffs may drive more buyers to these sites, especially for older models. ‘I wouldn’t wait,’ Edwards advises if a consumer is in the market to buy a used device.
The secondhand devices refer to previously owned electronic devices, such as smartphones, laptops, and tablets.
The secondhand market has grown significantly in recent years due to environmental concerns and economic factors.
According to a report by the International Association of Electronics Recyclers (IAER), the global secondhand device market is projected to reach $143 billion by 2025.
Secondhand devices often undergo thorough refurbishment, ensuring they meet manufacturer standards before resale.
Edwards notes that demand will ultimately dictate the price of refurbished devices on Swappa. Sellers can set their own prices based on market data, and prices may increase as demand rises.
- theguardian.com | Why you can’t just repair your phone in the US to avoid Trump tariffs
