Will Tariffs Slow Down Consumer Electronics Sales Recovery? - RetailWire

Will Tariffs Impede the Recovery of Consumer Electronics Sales? August 4, 2025 Recent market trends suggest that the anticipated rebound in consumer electronics sales may face hurdles due to ongoing tariff uncertainties. Circana has revised its annual sales growth forecast from 1.6% to just 1%, citing signs of consumers opting for more affordable options. Earlier this year, the Consumer Technology Association (CTA) projected a 2.6% growth in hardware sales for 2025, building upon a 1.1% increase in 2024—following two years of decline. This optimism was based on anticipated price reductions in TVs, wireless earbuds, gaming devices, and innovations driven by AI in computers and other gadgets. Nonetheless, CTA warned that proposed tariffs could substantially hinder growth. Data from Circana indicates that, through June, consumer technology retail sales increased by 1.5%. This growth was primarily fueled by early purchasing surges in March and April, with a subsequent slowdown in the following months. "Technology initially took center stage in consumer spending early in the year, especially with IT products as the PC market begins a refresh cycle," explained Paul Gagnon, VP and technol...