Are Tariffs Going to Make Technology Costs Soar?

In an ever evolving world, sometimes because of where your business is operating from you could very soon (with new tariffs being applied to different countries) be paying far more for technology and other products than you need to. For example specialized paging or wireless walkie talkies that have been imported to your country may well have increased costs. Manufacturers costs are increasing in some cases very substantially. So let's consider some of the issues directly.

Consider Southern Ireland destination for example: Southern Ireland is part of the EU. And the EU has just been hit with a 20% tariff from the USA for EU products sold to the USA. But we all know that all costs are often fed through to business and consumers ultimately wherever those costs came from.  The EU it is claimed 'negotiating' with the USA to change the tariff rates that the USA has applied to EU products, but consider what could happen if the EU was to agree to impose a tariff on China as part of a USA deal to get the EU / USA tariff reduced?  You think that can't happen? Think again, it certainly could.

Here is a breakdown of  tariffs are all about for the EU in their own words!

It's well known that the EU is often seen as 'protective' of the business in the EU and given the right circumstances maybe they would 'negotiate' a better tariff for the EU, but that will always come with those strings and its entirely in the interests of the USA if the EU magically applied a higher tariff to Chinese imported goods. Chine would reciprocate and that would 'push up' the EU cost prices of Chinese goods and that increase would certainly be passed on to consumers.

And what about Iceland? Thankfully Iceland benefits from a 10% tariff from the USA the same that the UK does. But again buying from the 'wrong' originating manufacturing country or buying from a USA based manufacturer that has equipment made in China could seriously increase the cost of the systems to you.  There are many companies that are USA based that will suffer. There is no doubt whatsoever at the time of writing that you will pay more when buying from the USA for Chinese originated goods but also from their dealers that might have to buy stock from the USA imported Chinese products.

Here is a very pertinent example:

Consider how the price of an iPhone could increase: A very good example might be an Apple iPhone that might have increased costs because of where it is made:

Apple has suppliers from at least 47 countries for the components that make up an iPhone. The tariffs are variable from as low as 10% from some countries but can be as high as 245% for core supplies made in China! What's the overall result of this? The answer might shock you:

The Apple iPhone could see the price increase by as much as £400 (and since the jump from 125% to 245% maybe more) here in the UK per iPhone!  

And from some makers and suppliers of paging and two-way radio equipment a similar result could effectively increase those paging systems substantially, depending on where the components are sourced from.

What's the answer if you need walkie talkies or paging systems?

LRS is a pager manufacturer that has been making and developing paging systems since 1993. And they are based in the USA. But wait! Originally LRS paging systems  were made in China, and if that was the case today they would suffer from an up to 125% tariff.   

Here is a tariff list created by the USA

BUT STOP!

LRS pagers and paging systems are not made in China  and have not been for many years. 

Today, LRS systems carry a far lower tariff than paging systems made in China that suffer from 125% or maybe even higher in future  (in fact it's just 17% or less for LRS production).

Even if you buy from other pager suppliers based in the UK or other countries some of them will have substantially increased costs thanks to the tariffs of the country where the equipment was made and shipped to the USA - those costs are always added to cost prices even for distribution later around the world. 

If you're buying from LRS UK then rest assured that tariffs applied by other countries are minimized greatly. They protect your investment in LRS paging systems long term.

LRS UK can easily be contacted on +44(0)1782 537000 and their website shows many paging systems and two way radios. They tell us they will offer customers a great deal including that all important 3 year warranty at no extra cost. For Southern Ireland visit pager.ie and for Iceland based customers visit their main website at lrspagers.co.uk