Sweeping changes to trade and tariffs will have effects across all sectors, but the exact consequences are difficult to predict. Differing short and long term changes in commodity pricing, disruptions in material availability and shifting demand are all possible. Including knock-on effects, it’s reasonable to expect noticeable price fluctuations among new electronics as well as the raw materials used to produce them. Here are a few things that we might see as a result of these broad actions.

Higher Prices for New Electronics

One of the most immediate and noticeable effects may be simple price increases. When tariffs are imposed on products such as smartphones, laptops, and gaming consoles, manufacturers and retailers often pass these additional costs on to consumers. Even devices produced domestically often rely on components that are produced abroad. As a result, higher prices can make new electronics less accessible, potentially driving more individuals and businesses toward used, refurbished, and recycled electronics as cost-effective alternatives.

Increased Domestic Manufacturing and Demand for Raw Materials

Increased product prices could contribute to growing pressure to increase domestic manufacturing. If foreign-made electronics become more expensive due to tariffs, there may be greater incentive for companies to establish or expand manufacturing operations within the United States. However, this shift is not without challenges, as many electronic components and raw materials are still primarily sourced from international markets. The raw materials used to produce electronics may see commodity price increases that benefit recyclers in the short term, but some critical materials like rare earth elements (REEs) are neither mined in the U.S. nor recovered during recycling in sufficient quantities for sustained production. Many REEs are produced largely abroad, especially in China, and are critical for electronics manufacturing. CEAR has begun recovering a greater variety of clean REE bearing material from electronics, but mining still makes up a majority of supply. Securing supply chains of these materials will continue to be an important focus for the industry and for government involvement.

Increased Demand and Challenges Related to Refurbished Electronics

The demand for refurbished electronics is likely to rise. Consumers and businesses looking to save money may choose to purchase high-quality refurbished devices instead of buying new ones. This shift can be beneficial for the IT asset disposition industry, as it creates more opportunities to refurbish and resell electronics that might otherwise have been discarded. On the other hand, the tariffs may also create challenges when it comes to sourcing replacement parts. Many components, such as processors, batteries, and circuit boards, are manufactured overseas. If tariffs are placed on these components, repair and refurbishing costs may rise, potentially limiting the affordability of used devices.

Opportunities for the IT Asset Disposition Industry

There may also be changes in e-waste generation patterns and the supply for ITAD providers. With new devices becoming more expensive, consumers and businesses might hold onto their existing devices longer. This could temporarily reduce e-waste generation.

For companies involved in ITAD and electronics recycling, tariffs present both challenges and opportunities. On one hand, the increased demand for refurbished electronics can create a stronger market for secondhand devices. On the other hand, higher costs for repairs and components may complicate the refurbishment process. Businesses in this industry may need to adapt by diversifying their supply chains, investing in more in-house component recovery, and exploring new methods for maximizing the lifespan of electronic devices.

The situation is complicated and outcomes are always hard to predict. While higher prices could drive greater demand for refurbished products, increased costs for everything from replacement parts to raw materials for manufacturing may create new hurdles. Companies like CEAR providing e-waste and ITAD services may not be affected as quickly as retailers, but they will need to stay agile, monitor trade policy changes closely, and develop strategies to mitigate challenges and capitalize on new opportunities.