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What the Big 4 Laptop Manufacturers Say about the Tech Tariffs

While the U.S. president pushes for tech tariffs to also cover laptops, Microsoft, Dell Technologies, HP, and Intel argue it would be harmful to consumers.

June 28, 2019 Adam Forziati 1 Comment

Big 4 Laptop, tech tariffs

Dell Technologies, HP, Microsoft, and Intel recently showed opposition to U.S. President Donald Trump’s proposal to add laptops and tablets to the list of Chinese goods targeted for tech tariffs, a Reuters report says.

The companies said in a joint statement the proposed tariffs on laptops would increase U.S. customer cost and fail to address the Chinese trade practices that the President’s tariffs seek to counter.

“A price increase of that magnitude may even put laptop devices entirely out of reach for our most cost-conscious consumers,” the statement said.

19% increase in price

The companies estimated at least a 19% increase in price if the tariffs go through, or about $120 per average retail price of a laptop, Reuters reports.

Microsoft, video game company Nintendo, and Sony Interactive Entertainment also made a separate joint statement saying the tariffs on video game consoles might put a hault on innovation in the channel.

It’s also affecting tech installation firms

IT business partners like integration firms will have to reconsider their relationships with certain A/V manufacturers also affected by the tech tariffs.

“Ultimately, it’s going to get passed down to the customer. Everyone’s going to have to pay more,” says Ivan Collins of InnofaceSystems.

David Bishop, chief commercial officer at Pro AV Systems, said that some of the companies’ major suppliers have implemented “pretty significant price increases” within the past year in anticipation of the tariffs.

Related: Here’s What Decision Makers Need to Know About Tariffs Affecting Tech

“In general, I’m in favor of a free and open market, but China has had a protected market for a long time now,” says Todd Whitaker, senior VP of sales and marketing at Inneos. “They’re rapidly becoming the world’s largest trading partner.”

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