Most of the components of cellphones, computers, and other electronic products are now manufactured in China. So, tariffs against China will result in increased costs of these components to come to the US, and passed on to American consumers. Even if China doesn’t raise the tariffs on electronics being imported here, they will raise the price of other products that will reduce the ability to buy electronics. “The latest tariffs will add another $500 a year in costs for the average U.S. household,” Katheryn Russ, an economics professor at the University of California at Davis, told NPR.
“Companies won’t immediately increase their prices”, said Jon Gold, vice president of supply chain and customs policy at the National Retail Federation. “Retailers will try to endure as much of the costs as possible but 25%, they can’t absorb all of that,” he said. “Products currently shipping to the U.S. for sale won’t see hiked prices, but some products may become more expensive in the summer, such as back-to-school items”, he added.
Electronics are among the hottest holiday toys and birthday gifts and, as such, analysts say this could impact retailers including Walmart, Home Depot and Best Buy.
As far as products that are part of our installations…U.S.-levied tariffs on steel and aluminum have manifested in rising prices of racks and enclosures, which are largely made of these materials.
The steel and aluminum tariffs may also affect coaxial cables (which use copper-cladded steel conductors and aluminum for shielding/braiding/armoring)
Tariffs on plastic molded parts can affect wall plates, connectors, and patch cords.
While some of the larger companies may try to absorb some of the tariff costs into their profits, as a small business near the end of the product chain, these increases will need to be passed on to customers.