The 10% tariff imposed by Trump on all imports from China is now active and is beginning to impact prices in the US.
This tariff is borne by US businesses and consumers once goods from China arrive, forcing companies to decide whether to pass these costs onto consumers through higher prices or absorb them, resulting in decreased profit margins.
The Telegraph (reported by Engadget) highlights that Acer is among the first companies to declare its decision to transfer the tariff costs to customers.
The CEO of one of the major computer manufacturers, Jason Chen of Acer, announced a 10% price increase on laptops produced in China due to the tariffs, stating it would happen “by default” and take effect from next month. […]
“We need to adjust the retail price to account for the tariff,” Mr. Chen remarked. “A 10% increase will likely be the standard due to the import tax. It’s quite clear-cut.”
During his campaign, Trump asserted that the tariffs would not impose higher prices, but later acknowledged that prices “might increase.”
If you are planning a significant purchase of items manufactured in China, it may be wise to buy soon. Despite the tariffs being active, many companies still have US stock imported last month available at current price levels, unaffected by the new costs.
Reports indicate that nearly 80% of laptops sold in the US are produced in China, with the consumer electronics industry expecting a costly impact.
The Consumer Technology Association (CTA), representing the electronics sector, has projected that tariffs could cost American consumers up to $143 billion, potentially leading to a decline in sales.
Apple is a Core Member of the CTA.
Acer has mentioned it is contemplating relocating some of its production outside of China, although significant challenges exist. The company has also stated it might consider some manufacturing within the US, though this appears to be mere diplomatic chatter, especially given that a separate Trump tariff could impose an import tax on components of up to 100%.
As of now, Apple has kept its prices unchanged, but it will eventually face the decision to either increase US prices or accept lower profit margins on its US sales.
Photo by Viacheslav Bublyk on Unsplash
