How US Tariffs Will Affect Cell Phone and Computer Repair Businesses

You’ve heard it right. 

The US-China trade tariffs have made their way into cell phone and computer repair just like all other industries. 

It’s not hard to guess that repair costs are likely to increase due to the price hike of spare parts imported from China and other countries.

“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 Guardian

“With President Trump’s newly announced tariffs… there’s a growing push to embrace the Right to Repair (RtR) movement.” – Wired

Most modern smartphone and computer components are manufactured in China, Vietnam, Taiwan, and Cambodia, which are now being hit with tariffs of 30 to 50 percent. But before you start worrying about the impact of tariffs on tech repair, here’s some bad news that could be good for your repair store:

The prices of smartphones are also likely to increase, which will lead consumers to opt for repairs instead of purchasing new devices.

How US-China Trade Tariffs Affect Repair Businesses

As part of a broader strategy to reduce US dependence on foreign-made technology, the U.S. has imposed high tariffs on electronics and their components. These US tariffs on electronics, ranging from 30% to 50%, directly affect how repair businesses source their parts, how much they pay for them, and how quickly they can get them delivered.

Electronics that were once sourced at predictable prices and lead times are now wrapped in uncertainty, causing ripple effects throughout the tech repair industry. Whether it’s a smartphone LCD panel or a laptop motherboard, these components have become more expensive and, in many cases, harder to obtain. This new reality is forcing repair shops to rethink how they operate, budget, and serve their customers amid the ongoing impact of tariffs on tech repair.

US Tariffs are Driving Up Repair Costs

Speaking of cell phone and computer repair tariffs, the parts most affected include:

• LCD screens
• Phone and laptop batteries
• Motherboards
• Charging ICs and power management chips
• Flex cables and display connectors

Due to the new electronics import tax, these essential components now cost more than before. As a result, you face longer wait times for restocking and must pay higher prices for parts, affecting your computer repair shop profitability.

A screen that once cost $45 might now cost $55 or more. Batteries, charging ports, and internal chips have all seen similar price hikes, putting pressure on already slim margins. Many repair shops are forced to make a tough choice: handle the cost increase themselves or raise prices for customers. 

While absorbing repair costs preserves customer loyalty, it also decreases your profits. On the other hand, price hikes can push potential customers to seek alternatives or delay repairs. Either way, the economics of repair have shifted, and staying profitable requires a careful balance between cost, quality, and service efficiency.

Consumers Are Choosing Repairs Over Replacement

While repair businesses are feeling the pinch, there’s a silver lining. The same tech repair industry tariffs that are inflating the cost of parts are also increasing the retail prices of new smartphones and computers. As these devices become more expensive to replace, consumers are more inclined to repair rather than buy new ones.

This shift in consumer behavior presents a significant opportunity for repair businesses. A $120 screen replacement may now seem more reasonable when a brand-new iPhone comes with a $1,200 price tag. Moreover, many customers are financially cautious, making cell phone repair a more appealing option than ever before.

Repair shop owners who can effectively market the value of repairs, both in terms of cost savings and sustainability, can still make it big even with the expected repair industry inflation.

Small Repair Shops Are Feeling the Pressure

Unlike large retailers or manufacturers, small repair shops don’t have the bargaining power to negotiate better rates with suppliers or shift their supply chains quickly. That means they feel the brunt of rising costs more acutely. Even a modest increase in part prices can disrupt the financial health of a small operation, especially one already operating with tight margins.

It’s not just the pricing that’s putting repair shop owners in a tough spot. Delays in shipments, unexpected duties at customs, and limited supplier options can also stall repairs and impact customer satisfaction. In this climate, efficiency, adaptability, and smart inventory planning become critical to staying afloat amid the growing tariff impact on small repair shops.

Finding Alternatives in Refurbished and Aftermarket Parts

One way to counter the effect of rising component costs is to use refurbished and aftermarket parts. While these options may not be ideal for every repair, they provide a viable solution when OEM parts are overpriced or unavailable due to trade wars and tech repair issues.

Refurbished components, often sourced from recycled devices or returned products, are growing in popularity due to their affordability and comparable performance. Meanwhile, aftermarket parts—especially for older models—can offer a budget-friendly alternative.

However, repair shop owners must ensure strict quality control when using these parts. Partnering with trustworthy vendors like MobileSentrix and InjuredGadgets helps source quality parts. However, to be on the safe side, you need to adopt best practices of testing components before using them.

What’s in it for Your Repair Shop

With all that said and done, here’s something to relieve repair shop owners of all tariff-related stress. Whether or not cell phone repair tariffs are imposed does not matter at the end of the day. What matters is being prepared for everything as a business owner. For instance, tariffs do not stop you from:

• Following up with your customers after repairs
• Automating your parts sourcing process to be able to fulfill rush orders
• Enhancing your soldering skills to avoid missing extra sales
• Selling accessories along with repairs
• Advertising and reaching out to customers for reviews

Instead of hoping for perfect conditions, it’s time to optimize your operations with RepairDesk. The all-in-one repair shop management software allows you to streamline every aspect of your business. When your customers love your service and become loyal, no tariffs can stop your business from growing.