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How tariffs on China affect tech buyers | TECH(feed)

Computerworld | Jul 23, 2019

The Trump administration levied tariff on many Chinese-made goods, including lots of tech hardware. Tech industry leaders have come out in opposition to the tariffs, which may result in higher prices. In this episode of TECH(feed), Juliet discusses how the tariffs are affecting casual consumers compared to IT shops of huge enterprises.

Copyright © 2019 IDG Communications, Inc.

Hey everyone welcome back to tech feed i’m juliet beauchamp. Today let’s talk about those tariffs on chinese imports--and how they’re affecting tech products. Stick around.

So by now you probably know about the tariffs levied by the trump administration on a number of chinese-made goods. This includes lots of hardware used to make all sorts of tech products. Laptops, servers, you name it. Some manufacturers have at least part of their supply chain based in china. Tariffs means higher prices, and in some cases they could be shifted onto the customer. But don’t worry too much… yet.

About a month ago, some top p-c makers said consumers could expect to pay around 19 percent more on notebook p-cs. Consumers could also see tariffs reflected in the price of gaming consoles, drones and even cell phones. These increases are all expected to take effect in the next few months. But what about the impact for enterprise?

I-t shops probably have a bigger tech budget than i do as an individual. So yeah these tariffs on notebooks might sting a little, but likely not a huge deal. But let’s think about bigger purchases like servers. As a result of these tariffs, some server hardware makers are shifting away from manufacturing in china and focusing more on taiwan and north america-based supply chains. Some good news, though--big names in servers like h-p-e, dell and lenovo have u.s.-based supply chains, so they should be unaffected by tariffs.

And if your business relies on a-w-s or other cloud services, you also shouldn’t expect to see your service cost increase. That’s because tariffs will likely be pushed onto vendors, not buyers. So good news, unless you’re a server vendor, your business will likely be unaffected by these tariffs.

Thanks for watching this episode of tech feed. If you liked this video be sure to give it a thumbs up and subscribe to our channel. Let me know if you’ve already felt the sting of these tariffs--i’m in the market for a new laptop, and i’m really hoping to avoid this 19 percent increase. See you next time.

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