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    Will Computers Get More Expensive with New Trade Tariffs?

    The Trump Administration is engaging in a high-stakes trade battle with China that could result in tariffs placed on computers and other tech products that enter the United States. What do these higher costs mean for businesses who need to regularly update their technology products? 

    Unfair Advantage 

    The Trump Administration is proposing a 25% tariff on information and communication products and parts imported from China, which could amount to $50 billion to $60 billion in total tariffs. The administration claims that these tariffs are in response to China’s routine theft of U.S. intellectual property and the imports it places on American goods. 

     Tariff Ripple Effects 

    What will the results of these tariffs be? Many major tech companies rely heavily on China to manufacture their tech products, including Apple. China is a big player in producing the company’s iconic iPhones and other products.  

    If computers become more expensive to import, companies may choose to pass those costs onto consumers, which could disproportionately burden small businesses with tight budgets. It may be a good idea for businesses to begin planning for this potentiality.  

    You may need to increase your IT budget to cover the higher cost of replacement computers or parts. Another option is to keep your existing computers running longer. You can do this by replacing or upgrading their parts, including computer memory. 

    Will China Retaliate? 

    Currently, China has threatened to retaliate against the Trump administration’s tariffs by imposing levies of its own on 106 different American imports. Many of these imports are in the agricultural sector, but they also include aircrafts and chemicals. So far, it does not seem like the Asian country is targeting American tech products.  

    Still, it is difficult to predict how these back-and-forth threats will ultimately play out and how it will affect America’s tech sector and its economy at large. 

    For now, businesses should be prepared for market volatility and possible increases in prices on tech products. At Memory America, we can help businesses keep their current suite of computers and servers running strong with a variety of RAM, hard disk and solid-state drive options.
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