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Acer to Hike Prices in the US by Around 10 Percent Due to Tariffs, According to CEO
In an interview with The Telegraph, Acer CEO and chairman Jason Chen said that its products made in the PRC will see a price increase of 10 percent as direct results of the new tariffs that the US will levy on electronics. However, Mr Chen is quoted as saying "We think 10 percent probably will be the default price increase because of the import tax." which doesn't mean it will be exactly 10 percent, as it might vary a bit between product segments. That said, what's clear is that Acer and most likely every other company that manufactures hardware in the PRC aren't going to eat any of the tariffs, as the companies appear to be shifting the burden of the new tariffs straight over to the end consumers. Mr Chen also suggested that some companies might be increasing their pricing by more than 10 percent.
The price increase will happen over time, as the new tariffs won't affect products that have left the PRC before the end of February. Alongside Acer, which is the fifth-biggest computer brand in the US market, it's likely that Dell, HP and Lenovo, as well as Apple, are going to hike their prices by the same 10 percent or more. Acer moved the assembly of its desktop computers out of the PRC during Trump's previous term, when a 25 percent tariff was imposed. Now Acer is looking at moving at least some additional parts of its productions out of the PRC and the US is on the table for some of its products. Considering that some 80 percent of all laptops imported to the US are made in the PRC, the Consumer Trade Association is expecting the new tariffs to cost US consumers some US$143 billion, which it assumes will lead to a slump in sales of consumer electronics.
The price increase will happen over time, as the new tariffs won't affect products that have left the PRC before the end of February. Alongside Acer, which is the fifth-biggest computer brand in the US market, it's likely that Dell, HP and Lenovo, as well as Apple, are going to hike their prices by the same 10 percent or more. Acer moved the assembly of its desktop computers out of the PRC during Trump's previous term, when a 25 percent tariff was imposed. Now Acer is looking at moving at least some additional parts of its productions out of the PRC and the US is on the table for some of its products. Considering that some 80 percent of all laptops imported to the US are made in the PRC, the Consumer Trade Association is expecting the new tariffs to cost US consumers some US$143 billion, which it assumes will lead to a slump in sales of consumer electronics.