President Donald Trump loves his tariffs. He sees them as an offensive weapon. Actual economists don’t see it that way. But they don’t run the US. The real question is, what effect will tariffs have? To answer that question, I got this comment from Kevin Surace, CEO, Appvance the “Father of The Virtual Assistant” regarding the potential impacts of proposed tariffs on IT. Seeing as this is an IT focused blog:
“Tariffs will increase the cost of nearly all hardware since components are sourced from China and many products are assembled there as well. It’s a little late to mitigate! But moving sourcing out of China has been an obvious choice for a few years. Few did so. But now there is no choice but to scramble.
“In some cases where automation is possible, we will see more onshoring. In other cases nearshoring or sourcing from democracies. The days of dealing with communist countries for ultra low labor costs may be waning.
The IT industry both sources from and sells to China specifically. This will likely increase competition within China from local vendors and increase US vendors costs. It cannot have a positive effect on any customers.”
I have to admit that I am considering moving up some of my tech purchases to lessen the impact of tariffs. Because while I don’t know how long this will go on for, I do know that there will be no winners.
Related
This entry was posted on February 3, 2025 at 3:50 pm and is filed under Commentary. You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
Tariffs And IT: Are They Disruptive To The Sector?
President Donald Trump loves his tariffs. He sees them as an offensive weapon. Actual economists don’t see it that way. But they don’t run the US. The real question is, what effect will tariffs have? To answer that question, I got this comment from Kevin Surace, CEO, Appvance the “Father of The Virtual Assistant” regarding the potential impacts of proposed tariffs on IT. Seeing as this is an IT focused blog:
“Tariffs will increase the cost of nearly all hardware since components are sourced from China and many products are assembled there as well. It’s a little late to mitigate! But moving sourcing out of China has been an obvious choice for a few years. Few did so. But now there is no choice but to scramble.
“In some cases where automation is possible, we will see more onshoring. In other cases nearshoring or sourcing from democracies. The days of dealing with communist countries for ultra low labor costs may be waning.
The IT industry both sources from and sells to China specifically. This will likely increase competition within China from local vendors and increase US vendors costs. It cannot have a positive effect on any customers.”
I have to admit that I am considering moving up some of my tech purchases to lessen the impact of tariffs. Because while I don’t know how long this will go on for, I do know that there will be no winners.
Share this:
Like this:
Related
This entry was posted on February 3, 2025 at 3:50 pm and is filed under Commentary. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.