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Monday, May 13, 2019 12:22:27 PM
Electronics assembled in China for the US will all be re-sourced.
Whether you'll see tariff-related computer price increases in the US will depend on various factors.
Some PC vendors already have manufacturing outside of China, and it'll also take time for the tariff hike to ripple through product stock
By Michael Kan - May 10, 2019
To avoid the existing and upcoming tariffs on computer parts assembled in China, some big-name vendors have been trying to move their product manufacturing to other countries.
For instance, motherboard and graphics card maker Asus has been shfiting its manufacturing to Vietnam and Taiwan ever since the initial 10 percent tariff rate went into effect back in September. "The impact (of the new tariffs) will be minimal because we adjusted before," company executives told investors earlier this week.
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Lenovo, with an already geographically diverse manufacturing base has been shipping non-Chinese made products to the US, avoiding the tariffs.
"We have factories in the United States, Mexico, China, Brazil, Hungary and India," Lenovo executive vice president Kirk Skaugen told investors back in November. "If anything we think this (the tariff impact) is a big benefit to Lenovo."
.
But tariffs have worried smaller PC hardware vendors with negligible market-share, who are more reliant on Chinese suppliers for their components.
Last October, desktop case vendor NZXT told PCMag it had no choice but to raise prices on its products in response to the initial 10 percent tariff. "I don't have a 10 percent [profit] margin I can just throw away and absorb the tariffs," said NZXT vice president Jim Carlton at the time.
.
Dell is still in the process of redirecting their supply chain so had to raise some prices following the initial 10 percent tariff rate. But the incentive to locate new suppliers outside of China is driving activity at these laggard firms.
Whether you'll see tariff-related computer price increases in the US will depend on various factors.
Some PC vendors already have manufacturing outside of China, and it'll also take time for the tariff hike to ripple through product stock
By Michael Kan - May 10, 2019
To avoid the existing and upcoming tariffs on computer parts assembled in China, some big-name vendors have been trying to move their product manufacturing to other countries.
For instance, motherboard and graphics card maker Asus has been shfiting its manufacturing to Vietnam and Taiwan ever since the initial 10 percent tariff rate went into effect back in September. "The impact (of the new tariffs) will be minimal because we adjusted before," company executives told investors earlier this week.
.
Lenovo, with an already geographically diverse manufacturing base has been shipping non-Chinese made products to the US, avoiding the tariffs.
"We have factories in the United States, Mexico, China, Brazil, Hungary and India," Lenovo executive vice president Kirk Skaugen told investors back in November. "If anything we think this (the tariff impact) is a big benefit to Lenovo."
.
But tariffs have worried smaller PC hardware vendors with negligible market-share, who are more reliant on Chinese suppliers for their components.
Last October, desktop case vendor NZXT told PCMag it had no choice but to raise prices on its products in response to the initial 10 percent tariff. "I don't have a 10 percent [profit] margin I can just throw away and absorb the tariffs," said NZXT vice president Jim Carlton at the time.
.
Dell is still in the process of redirecting their supply chain so had to raise some prices following the initial 10 percent tariff rate. But the incentive to locate new suppliers outside of China is driving activity at these laggard firms.
We've run out of other people's Social Security taxes needed to subsidize our low income tax rates.
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