The US-China trade war continues to impact the landscape for security identity management manufacturers, resellers, and end-user solutions.
In May, the Trump Administration announced an increase in import tariffs from 10% to 25% on $200 billion of goods from China. These increases impact both U.S. producers and more recently, consumers. The positive outcomes from these tariffs include increased production and output in protected sectors. Yet many U.S. producers are bearing the brunt of increased material costs which directly impact the consumer.
Increased tariffs on products coming from China raise the cost for many American companies. Many companies absorbed the initial 10% of the trade impact, however, the recent 15% increase now extends to the consumer as prices on products rise.
Even with tariff hikes, U.S. Manufacturers are optimistic that issues caused will be resolved, but in the interim are sourcing from other countries and raising prices.
Like the larger manufacturing sector, many of our partners absorbed the initial 10% tariff impact. These new hikes, with more potentially on the horizon, have forced price increases which directly impact the price we extend to our customers.
The cost of secure ID badge products has been affected, including for legacy products. Older model printers and consumables gained the greatest price increase, some with a 30%+ rise in cost. These increases are a moving target and not a one-time event. Some manufacturers made changes to pricing that went into effect immediately. Others have announced additional price increases for 2020.
Our partners are making great strides to keep costs down and communicate increases with us before changes are implemented.
Our team at ADVANTIDGE works diligently to bring our clients the best prices and best service possible. With US-China trade changing how businesses operate across the country, we continue to do our utmost to extend fair pricing, while adding value to those we serve.
Contact us to better understand how tariffs may impact your purchases.
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