Tech tariffs have been on then off then on again. What is going on? Let’s chat!

What is a tariff?

A tariff is a type of tax on an imported item. It is collected by the government. Tariffs are often used as part of policy to ensure that domestic products of a similar type are not having to face “unfair” competition from foreign goods. They can also be used to raise funds for the government or as part of trade negotiations. The tariff is generally collected when the item enters the country it is being exported to.

Why were tariffs being applied to tech products?

Well, the tariffs were not just being applied to tech products, but a lot of products. Often countries decide to apply tariffs on a case by case basis for categories of products coming from certain countries. Recently, tariff increases were proposed across the board for a all products from all countries. These increases of course included technology products.

So, the tech tariffs were called off?

Tariffs for most countries were postponed for 90 days. Tariffs on products from China, however, were not postponed, and continued to go into effect. The US purchases a lot of products from China. We also manufacture a lot of products in China. Moreover, a lot of the products we buy from and make in China include technology products, like iPhones. These tariffs would represent significant and sudden price increases if they were to go into effect as most retailers would pass the cost of the tariff on to the consumer. It is likely that the price increases played a role in deciding to hold off on tariff increases for tech products.

Whew! So I can get my favorite tech item at the previous cost?

Well, maybe. Sorta. Later, it was announced the the tech tariffs weren’t really postponed. Tech products are still subject to tariffs, but under a different grouping from other products. No definite timeline was given for how long that would be the case.

Keep up with the news. If there is a tech product you want to get, like a TV or cell phone, you may want gauge the best time to buy.

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