The IT hardware sector is experiencing unprecedented disruption due to recent tariff implementations. Affecting major manufacturers like Apple, Dell, HP, Cisco, and other key players, these tariffs are creating significant price increases, supply chain challenges, and forcing strategic adjustments across the industry. Firstbase's customers and others need to prepare for hardware cost increases ranging from 8-20% depending on product categories, with potential further escalation as additional tariffs are implemented and global trade tensions rise. The most viable strategies include accelerating planned purchases, exploring alternative procurement models, and developing contingency plans for extended deployment timelines.
Read our view on how to navigate the price hikes, policy shocks, and possible global procurement hazards .
On April 2, 2025, the United States announced significant new tariffs targeting approximately 60 countries and regions, with rates ranging from 25% to 104%. These tariffs, set to go into effect on April 9, 2025, are having an immediate impact on the IT hardware industry, particularly affecting devices imported from major manufacturing hubs. Asian manufacturing centers are particularly impacted with Vietnam facing 46% tariffs, Taiwan 32%, and Thailand 36%.
Yahoo Finance noted that China said it will raise its tariff on US goods to 84%, retaliating to the hefty new tariffs on its imports that kicked in on Wednesday.
The move came after the Trump administration followed through on a threat to add a 50% tariff on Chinese goods, in addition to 34% reciprocal tariffs, raising the overall tariff rate on Chinese goods to 104%. The steep new duties on China and 184 other US trading partners took effect at 12:01 a.m. ET on Wednesday.
Most concerning for hardware procurement is the warning of an additional 50% tariff specifically on Chinese goods, which would bring the total import taxes to an unprecedented 104% for products manufactured in China. This significantly exceeds previous tariff levels and marks a dramatic escalation in trade tensions that directly impacts IT hardware availability and pricing.
Before the April announcements, the year had already seen significant tariff activity affecting the technology sector. A 25% tariff on imports from Canada and Mexico went into effect on February 1, 2025, impacting companies with manufacturing operations in these neighboring countries. Throughout early 2025, various tariff adjustments specifically targeted consumer electronics, server hardware, networking equipment, and wireless infrastructure.
The tariff impact is creating substantial price increases across enterprise hardware categories:
The personal computing segment is experiencing similar disruption:
“We’re in uncharted territories. If prices go up, which they probably will if these tariff prices actually hold then PC companies will start raising prices and Apple will be the last. Customers who act now can lock in costs and avoid the pain. If you can buy now. Buy now.”
— Ahmad Zakaria, COO Firstbase
Even Apple is flying planes of iPhones to the US from the uncertainty.
Since 2018, many hardware manufacturers had been strategically diversifying their manufacturing bases away from China to mitigate earlier tariff impacts. For example:
However, the April 2025 tariffs have effectively nullified these strategies by targeting nearly all major manufacturing hubs. As Morgan Stanley Research notes: "there becomes very little differentiation in friend shoring vs. manufacturing in China—if the product is not made in the U.S., it will be subject to a hefty import tariff".
“We’re seeing companies pause production, halt exports, and reassess global distribution in real time.”
— Eldad Balas, Firstbase
The rapid shifts in manufacturing locations are creating additional supply challenges beyond just price increases:
Given the imminent implementation of tariffs and projected price increases, you should consider these short-term strategies:
As the tariff situation evolves over the coming months, these medium-term strategies can help mitigate impacts:
Reach out to our Hardware Intelligence Advisors today to help!
The tariff situation is already affecting global IT spending forecasts. IDC previously projected 10% growth in global IT spending but is now revising expectations downward:
The IT hardware industry faces limited options in responding to these tariffs:
Firstbase’s Hardware Intelligence Advisors are on the forefront of this wave. The 2025 tariff landscape presents significant challenges for organizations relying on IT hardware procurement. As prices rise and supply chains adjust, Firstbase has an opportunity to provide immense value by offering strategic guidance, procurement expertise, and alternative acquisition models that help customers navigate this complex environment.
By staying ahead of tariff developments, maintaining close relationships with major vendors, and developing innovative procurement solutions, Firstbase can help customers minimize disruption while maintaining access to critical technology infrastructure despite the challenging tariff environment. Consider hosting regular briefings for customers on tariff developments, creating procurement strategy guides tailored to different customer segments, and developing models that show the financial impact of various procurement strategies under current tariff conditions.
The coming months will likely bring additional policy changes, manufacturer adjustments, and market shifts that require ongoing attention and strategic response. By positioning as the expert guide through this complex landscape, Firstbase can solidify its role as an essential strategic partner for IT hardware procurement in the age of tariffs. Reach out today!