As the United States rolls out tariffs on imported goods, companies everywhere are working hard to understand the potential impact of these economic policies on their business. While the answers are complex and dependent on your industry, one thing is clear: The cost of electronic hardware will almost certainly increase.
The good news?
It’s still early. We aren’t seeing much impact from recent tariffs yet. However, businesses shouldn’t wait to decide how they’ll procure computers and network equipment in this new economic environment.
The key is to be informed. Here’s what we know today about tariffs, their impact on electronics, and your options for moving forward.
What tariffs are in place now that will affect the price of electronics?
The United States has imposed several tariffs that will impact the price of computers, laptops, and network gear for American businesses. Other tariffs have been proposed but not yet implemented. Here’s what the tariff landscape looks like today.
- 20% tariffs on goods from China and Hong Kong. This policy will directly impact the price of electronics, as most semiconductors and devices are manufactured in Asia.
- 25% tariffs on goods from Mexico and Canada. This policy should influence the price of electronics, as some electronic parts and assemblies are manufactured in these countries.
- Proposed 25% tariff on semiconductors. This policy has not been put in place yet, but may go into effect as early as April 2, 2025.
The expected impact from tariffs
In the short term, US tariffs are expected to raise the price of electronic devices for both consumers and businesses. Manufacturers aren’t equipped to shift operations to US facilities overnight, and some, like Vanguard, have no plans to set up shop in the US.
While market forces may incentivize US manufacturers to pursue their own chip production efforts, it’s not clear how significant (or competitive) such a development would be, or how long it would take to reach maturity. Taiwan remains the world leader in chip manufacturing expertise, and there’s no clear path for the United States to catch up quickly.
What does all this mean for the price of electronics?
Manufacturers will most likely pass the cost of tariffs to the end customer, as Acer has already done. Over the next few quarters, businesses should plan to see an increased cost of electronic hardware.
How to prepare for an increased cost of computers and network devices
These tariffs create an additional challenge if you need to migrate to Windows 11 or deal with Windows Server 2019 becoming end of life. For every device on the network, you’ll want to ask yourself several questions:
- How do we want to pay for this device?
- Can we offset any cost increases by purchasing discounted M365 business licenses?
- Do we want to absorb unpredictable, rising costs while maintaining responsibility and control over the device?
- Or would we rather get a stable cost of use and offload the responsibilities of management and procurement to a partner?
As you evaluate your hardware needs and your preferred cost structure, you have several options for moving forward:
- Don’t upgrade yet. Wait and see how the tariffs play out over the next few quarters. Plan to pay for extended support for Windows 10, which will be required after the OS becomes end-of-life on October 14, 2025.
- Upgrade owned machines as needed to migrate to Windows 11 and prepare to absorb unknown costs of future device maintenance and replacement under an ownership model.
- Move away from ownership and lock in a good hardware price by transitioning to a HaaS (hardware as a service) approach at today’s market rates. Depending on contract terms, you may be able to shield yourself from rising hardware costs for the duration of the contract.
Which approach is right for you?
The answer will depend on your preferred cost structure. If your organization has cash reserves and prefers capex over opex, it may make sense to continue with an ownership model, either maintaining your existing machines or purchasing new ones to replace them.
If your organization has limited cash reserves and prefers opex over capex—and if you have a low appetite for financial risk—then there’s no better time to move to HaaS.
HaaS as an insulator against trade wars
As the electronics market moves into a period of volatility, HaaS offers a great way to smooth out the impact of trade wars on the cost of equipment. Depending on your provider’s contract terms, you can get 1-3 years of hardware and service coverage locked in at today’s prices. This is a great way to insulate your company from the potential impact of tariffs.
Specifically, a HaaS approach offers these benefits as trade wars ramp up.
- Predictable monthly pricing
- Device upgrade and replacement included
- Device maintenance and service included
- Potential savings if you bundle HaaS with other IT services
That last point is important. It’s worth unpacking in detail.
Evaluating hardware as a service (HaaS) providers
Not every HaaS provider offers comprehensive services for IT, cybersecurity, and data integration.
In fact, it’s quite rare to find an MSP (managed service provider) who can cover all these things with one integrated team.
But it’s worth looking for this type of partner. They can provide:
- Comprehensive services coverage for all your technology needs
- Significant cost savings through service bundling
- A truly integrated approach managed by a cohesive team of experts
That’s our approach here at Corsica Technologies. Whatever your technology needs, we’ve got them covered—from IT to cybersecurity, hardware to EDI and data integration.
The best part?
We do it all for one stable monthly cost. Even as electronics prices experience volatility, you can get all your technology needs covered in one predictable line item. This makes it easier to focus on your organization’s mission—without stressing about budget overruns.
Learn more here: Corsica Complete Service Bundle.
The takeaway: Choose the cost structure that works for you
Hardware ownership isn’t the only option in today’s volatile economy. If you need predictable costs, a HaaS approach offers a great alternative to purchasing and maintaining hardware. But HaaS works best when it’s bundled with other technology services. That’s why we cover it all here at Corsica Technologies. Contact us today if you’re ready to take a budget-friendly, integrated approach to technology.
Ready to minimize the impact of tariffs?
Reach out to schedule a consultation with our hardware specialists.
