Global XR and Smart Glasses Market Faces High Risk from Tariff War Due to Heavy Reliance on China-based Manufacturing

Apr 14, 2025

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.

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Author

Flora Tang

Flora is a Senior Analyst at Counterpoint Research, based in Hong Kong. With over nine years of experience in the mobile industry, she specializes in analyzing the consumer electronics market and the Chinese supply chain. Flora has held various roles in the market intelligence and business strategy functions with leading Chinese smartphone OEMs, internet company and telecom operator. She initially joined Counterpoint Research in 2017 but later moved on to play key roles in OPPO’s international business strategy in 2021 and HONOR’s corporate strategy planning in 2022. Flora has since returned to Counterpoint, where she now serves a broader array of global technology players. Academically, Flora holds a bachelor’s degree in International Relations from Sun Yat-Sen University and a master’s degree from The Chinese University of Hong Kong.