Customs duties for electronic products from China and their effect on the market,

The title is serious, but the matter is quite serious in itself, particularly for large Chinese manufacturers of hardware which we are also buying here in Poland. Thus, we may say that the trading decisions taken by the administration of the current U.S. president in the relationships with China affect us, too. As we know, USA raised the customs rate for electronic products manufactured in China by 10%. Consequently, the prices of certain PC components grew as well, such as the prices of power supplies, first communicated directly by SeaSonic, one of the largest producers of these components. The raises are expected at 20 to 7.5%, depending on the actual model. These rates are certain on the U.S. market, but we can expect that the raise will affect other markets as well.

Apart from Seasonic, the U.S. decision affected some of the largest OEMs/ODMs as well, specifically Compal, Pegatron, Wistron and Quanta, who either decided to move some of their manufacturing sites out of continental China (Quanta, Pegatron) or to reopen their existing plants, e.g. in Vietnam (Compal), Philippines or Mexico (Wistron). It means less servers or notebooks (mainly those from recognized vendors) marked as “Made in China”, but can also cause problems with continuity of supply, or even with quality.