Overview: The Trump Administration has announced a sweeping new tariff policy, including a 10% blanket tariff on all U.S. imports effective April 5, 2025. Starting April 9, higher “reciprocal tariffs” will apply to 57 countries—China (54%), Vietnam (46%), Taiwan (32%), among others. Additionally, on April 8, an executive order increased tariffs on Chinese goods by 50%, raising the total U.S. tariff rate on Chinese imports to 104%, in response to China’s retaliatory 34% duty on U.S. goods. In turn, China escalated its tariffs on American goods to 84%. Frequent policy shifts and the Trump administration's hardline stance on China, including recent tariff hikes, pose a substantial risk to the global eXtended Reality (XR) and smart glasses industry, which is heavily dependent on China-based manufacturing.
This report analyses the global XR and smart glasses manufacturing ecosystem, as well as the potential impact of the ongoing tariff war on the sector.
