What to Expect with Tariffs and the World of IT

Tariffs: the new buzzword across the globe. No matter your industry, business size (or the country you live in, for that matter), everyone is talking about what Trump’s tariffs will mean. 

Tariffs–those often-confusing taxes on imported goods–can have ripple effects across many industries. But in the fast-moving, globally interconnected world of IT, they hit especially hard. Whether you’re running a small startup or managing procurement for a Fortune 500 company, understanding how tariffs impact IT is crucial to making smart decisions today and planning for tomorrow.

Let’s examine tariffs, recent changes to the IT landscape, and how your business might prepare for different outcomes over the coming months.

How Are Trump’s Tariffs Affecting IT Equipment?

Let’s start with the burning question: how are recent tariffs introduced by the Trump administration specifically impacting IT equipment? Here’s what we know right now.

As of April 2025, the following tariffs primarily target imported IT equipment and components, leading to increased costs for businesses and consumers.​

Key Tariffs Affecting IT:

• A 25% tariff has been imposed on foreign-made semiconductors, with plans to increase this rate over time. ​

• Tariffs could raise the prices of laptops and tablets by approximately 46%, potentially reducing sales by up to 68%. ​

• Items such as keyboards, monitors, and computer parts are subject to increased tariffs, leading to higher prices for these essential peripherals.

• Smartphone components, primarily manufactured outside the U.S., face tariffs up to 100% for products from China, 26% from India, and potentially 25% from South Korea. This affects both the cost of new devices and repairs.

What Do Tariffs on IT Equipment Mean for Businesses? 

Okay, so now you understand the hard numbers. On a more macro scale, what do these tariffs mean for businesses? How will this affect the IT equipment and software industry as a whole, and what is the trickle-down effect for companies, both large and small? 

1. Rising Costs of Hardware

Many IT components, from servers and switches to laptops and networking gear, are manufactured overseas. When tariffs are imposed on countries that export these products, the result is simple: prices go up. Companies may find themselves paying significantly more for the same equipment they budgeted for last year.

• Example: A 25% tariff on imported chips or servers from a specific country could easily turn a $100,000 hardware order into a $125,000 expense.

This price hike doesn't just affect large-scale infrastructure — consumer devices like phones and routers are also affected, which can trickle down into higher operational costs for companies.

2. Supply Chain Disruptions

Tariffs can also complicate global supply chains. When manufacturers reroute production to avoid tariff-heavy regions, delays and shortages often follow. This can create backorders for critical IT equipment or limit access to specific hardware configurations.

3. Software Implications

While most tariffs target physical goods, software isn't entirely off the hook. Many software providers rely on global labor and infrastructure. If tariffs or trade tensions disrupt these arrangements, costs can be passed down to customers or cause delays in support and development cycles. 

4. Market Uncertainty

The evolving nature of trade policies has introduced uncertainty, affecting business planning and operations.​ The complete fallout of this is unknown.

How Companies Should Prepare for Tariff Changes

Tariffs are often driven by global politics and can change with little warning. Read the news the past few days, and you’ll see what we mean. That’s why companies need a strategy that blends flexibility, foresight, and financial planning. 

1. Audit Your Supply Chain

Know where your hardware comes from. Work with vendors who are transparent about their supply chains and who can offer alternatives in the event of tariff spikes or sourcing disruptions. Many vendors have distribution centers in the US. If the inventory arrived before the tariffs, then those goods will be tariff-free.

2. Negotiate with Vendors

Now’s the time to start renegotiating contracts. Consider locking in prices before any potential additional tariff hikes hit. Some vendors may offer tariff protection clauses or discounts for longer-term commitments.

3. Diversify Your Suppliers

If your business is heavily reliant on a single supplier or region, you may be vulnerable. Explore alternative vendors in different countries or those with domestic manufacturing options.

4. Invest in Cloud and Virtual Infrastructure

Cloud computing is less susceptible to tariffs than physical infrastructure. Transitioning parts of your IT infrastructure to the cloud can provide insulation from global pricing volatility and reduce dependency on imported hardware.

How to Plan for IT Equipment + Software Purchasing

The million dollar question: buy now, or wait? We’re going to make a case for both sides, with thoughtful considerations for your business as we navigate uncertain economic times due to new tariff introductions.

The Case for Buying Now:

• If tariffs are expected to increase or new regulations are looming, locking in current prices can save your company significant money.
• Global supply chain delays can stretch delivery times, making it safer to secure mission-critical hardware in advance.
• Vendors often run end-of-quarter or end-of-fiscal-year promotions that may help offset some of the tariff-related price increases.

The Case for Waiting:

• Governments can reduce or lift tariffs, and waiting might save money if negotiations lead to more favorable trade terms.
• New technology is constantly around the corner — waiting might mean access to more advanced or energy-efficient equipment.
• If you're transitioning to cloud services, future hardware needs may be drastically reduced, making some purchases unnecessary.

What to Expect: Tariffs and IT

Tariffs are just one piece of a complex global puzzle that impacts the cost, availability, and delivery of IT goods and services. The recent news headlines are alarming — but don’t let it cause your business to make panicked decisions.

As with any business decision or economic cause and effect, with the right preparation, companies can shield themselves from some of the worst of tariff effects.

Whether you choose to buy now or hold off, the key is to stay informed, remain flexible, and build strong relationships with vendors and partners. In a world where political shifts can change the price of a server overnight, being proactive isn’t just smart — it’s essential.

If your business is considering a software purchase or has general questions about IT equipment purchasing, we’re here to help. Schedule a time to chat with a member of the PK Tech team.