Acer's 10% price hike: Assessing fallout of US tariffs on American firms and Asia

Acer CEO Jason Chen confirmed in a UK interview that the company will raise prices on US-bound laptops made in China by 10% next month in response to Trump's tariffs. He also hinted at possible production shifts beyond China, including manufacturing in the US, The Telegraph reported.

"We will have to adjust the end user price to reflect the tariff," Chen said. "We think 10% probably will be the default price increase because of the import tax. It's very straightforward." Acer's high-end laptops, priced up to US$3,700, could see increases of several hundred dollars.

Chen said the decision was made last week, though the impact may take time as tariffs apply only to goods leaving China after February. He also noted some companies might raise prices beyond 10% under the guise of tariffs.

Acer's response to US tariffs signals wider shift in PC manufacturing

Taiwan-based Acer, the fifth-largest PC vendor in the US, relocated desktop production out of China after Trump's first-term 25% tariff. Now, it is considering alternative supply chains, including US manufacturing.

ICsmart reports that Acer has already shifted desktop assembly out of China and is now assessing supply chains beyond China, including US manufacturing. Analysts predict that under the new US tax policy, PC brands will accelerate notebook production shifts to Vietnam and Thailand.

The top four PC brands in the US—HP, Dell, Lenovo, and Apple—manufacture most of their laptops in China. With Acer leading the way in announcing a 10% price hike, analysts expect Lenovo, Asus, Dell, HP, and Apple to follow suit.

With nearly 80% of US laptop imports coming from China, Trump's 10% tariff could cost American consumers US$143 billion and reduce sales, according to the Consumer Technology Association (CTA). However, the tariff remains lower than Trump's earlier proposals.

Note: Electronics and machinery account for nearly half of China's exports to the US.

Trump's tariffs reshape global tech: Apple at risk, Asia adapts

Acer's 10% price hike due to US tariffs highlights growing concerns that American companies may feel the brunt of the impact more than their Asian counterparts. Analysts suggest that while Asia can absorb some disruptions, US firms—particularly in semiconductors and consumer electronics—face greater risks.

According to Bloomberg Intelligence analyst Francis Chan, Apple is more exposed to US tariffs than Samsung, though the broader effect on Asian markets remains moderate. While chip designers, display panel makers, and machinery firms in Asia could see some impact, major Chinese tech firms like Alibaba and Pinduoduo (PDD) appear resilient. Meanwhile, investor confidence in China's AI sector, particularly DeepSeek, has helped offset economic pressures.

Key industries in Asia still face challenges. Shein's planned London IPO may be delayed, and Taiwan's chipmakers and display panel firms could see declining profits. However, Asian oil refinery margins might improve as the US absorbs excess supply. Apple, in particular, remains highly vulnerable to worsening trade tensions.

US tariffs: hidden costs for semiconductors and laptop manufacturing

Acer's 10% price increase highlights a broader trend—US tariffs may end up backfiring on American companies rather than the Asian manufacturers they target.

A DIGITIMES supply chain senior analyst points to the semiconductor sector as another example. If the US enforces a 100% tariff on chips, the absence of viable alternatives to TSMC—coupled with the company's firm pricing—could mean Nvidia, Apple, and AMD bear the brunt of the impact.

Citic Bank warns that full implementation of semiconductor tariffs could dampen product demand. Trump's tariff plan seeks to pressure foreign chipmakers into investing in US manufacturing while also curbing external subsidies under the CHIPS Act, as Yahoo Finance noted.

With 44% of US logic chips and 24% of memory chips coming from Taiwan, a 100% tariff would likely hit American firms hardest. Upstream chipmakers like Nvidia, AMD, Qualcomm, Intel, and Micron depend on Taiwanese foundries, while downstream giants such as Apple, Dell, and HP rely on Taiwanese chips for their products.

Beyond semiconductors, the laptop industry is also feeling the strain of US tariffs. Acer's manufacturing operations are concentrated in China, Indonesia, and India, while the US lacks EMS partners. Until Acer secures a US-based provider, it will have little choice but to pass the added costs onto consumers, given the already tight profit margins in the notebook market.

Acer notebook manufacturer list

Source: Bureau of Indian Standards, compiled by DIGITIMES, February 2025

US laptop production requires a local EMS provider or Chinese and Taiwanese assemblers setting up in the US. However, the US lacks a complete laptop supply chain, with most key parts like displays and advanced processors still made abroad.

Laptop tariffs may hurt the US more than Asia. If a US-based EMS plant opens, Acer and other brands might compete for partnerships, driving up costs.

This underscores why many believe TSMC and major Asian electronics manufacturers still hold strong leverage, as US companies remain highly dependent on overseas production for both semiconductors and consumer electronics.