Tariffs Could Impact the Economy… and Your Business

As an information technology provider, we are tasked with helping your business make the best decisions possible related to your IT infrastructure. In this role, we offer a gentle recommendation that you purchase hardware you expect to need over the next year as soon as possible. If you don’t, you might be left high and dry without any good options to choose from.

FYI, this is not business financial advice… it is simply IT advice, as the landscape for information technology could dramatically change over the course of the next couple of years.

The Anticipated Jump in Computer Components’ Cost

Here’s the thing: most of the tools we rely on every day, including computer hardware, use components that are manufactured in other countries. Shifting an entire manufacturing infrastructure is impossible, too, so you’ll have limited options for getting the tech you need at a reasonable price. Here are some of the price hikes that the Consumer Technology Association (CTA) and Trade Partnership Worldwide (TPW) analyst groups think we could see:

• 45 percent for laptops
• 25.8 percent for smartphones
• 31.2 percent for monitors

There are a couple of outliers to these numbers, including prebuilt desktop PCs, which are usually manufactured outside of China, but they still could see an increase of up to 6 percent. You can expect the United States tablet and laptop market to see the highest bump in price—a whopping 79 percent—as they would be subject to a 70 percent tariff.

And if you think you’re not the ones paying the tariffs, well, we’ve got some bad news for you.

These Cost Increases Could Impact Your Business

While the numbers might vary, there is one thing all economists agree on: the customer will bear the brunt of these tariffs, including small and medium-sized businesses.

The costs associated with tariffs are passed down from the importer to the customer, disproportionately impacting those who don’t make as much money. The costs could also get inflated by distributors in the hopes of improving profits. Domestic producers can also raise prices without a care in the world as the tariffs will block foreign sources from selling similar goods.

Even without tariffs in place, these price increases could happen, and we want to ensure that businesses in Calgary are ready to upgrade when the time comes.

We strongly urge you to upgrade now if you can, or as soon as humanly possible. To get started, call us at (403) 210-2927 today.