How new tariffs could affect hardware pricing

 In Hardware, IT News/Events, News

Last week this blog post contained details about how new tariffs could increase the pricing of IT hardware and associated components. Since tariffs had been headlining national news for weeks, we expected readers to be neither surprised nor shocked.

Mostly, we were right. Mostly.

Although much of the feedback we received helped start a healthy conversation about how changing market conditions could affect the price of IT hardware, a few readers questioned whether we were making a political statement.

We believe political discussions are best left where they belong: in endless Facebook comment chains featuring nearly-forgotten high school classmates. In the meantime, SHI will continue to concentrate on all things IT in an apolitical environment.

A complete list of goods affected by tariffs can be found on the Office of the United States Trade Representative website. However, that list is 200 pages and covers everything from car parts to carp. (Yes, the fish.)

What will most affect SHI customers are increases in the components listed below, which could raise the production costs of the products in which they reside. These components include:

  • ADP magnetic disk drive storage units and parts
  • Magnetic or optical readers; machines for transcribing data on data media in coded form and machines for processing such data
  • Semiconductor media, “smart cards”
  • Digital cameras and video camera recorders
  • Video monitors, including flat panel screen assemblies and video projectors
  • Indicator panels using both LCDs or LEDs
  • LEDs for backlighting of LCDs
  • Parts of flat panel displays

(For ease of reference, the “HTS Subheadings” of what is listed above start with 8471, 8523, 8525, 8528, 8531, 8543, 9405. Try searching those areas of the document if you have additional questions or are seeking similar product groups.)

So, will your IT hardware costs increase?

The two determining factors in tariff-related costs are 1) what the product is and 2) where it is manufactured. The diversity of today’s global supply chain makes it difficult to pinpoint which products and OEMs are using affected components built in qualifying countries. But, it’s safe to say that the production costs of every major IT hardware OEM will be affected in some way, some more than others.

SHI is working with our hardware partners to understand how these changing market conditions will affect the cost of doing business going forward. The situation remains fluid and can always change based on revised government regulations or the business decision of a supplier. If you are currently undergoing a hardware refresh – or are budgeting for one in the near future – be sure to contact your account team to receive the latest news, pricing, and availability of the technologies you are looking to deploy.

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