How a Home Technology Company Reduces the Impact of Tariffs

Tariffs are a word that conjures up uncertainty. One minute, the Court of International Trade ruled many of them illegal. Next, an appeals court ordered a stay while the case was challenged. 

At one time, China faced tariffs as high as 145%. Today, they’ve been temporarily reduced to 10%. With the additional “fentanyl” tariff of 20%, China’s overall rate is about 30%. 

Some Mexican and Canadian goods are subject to 25% tariffs. On May 30, the rates on aluminum and steel imports rose from 25% to 50%. 

So, what do all these topsy-turvy dynamics mean for smart home systems? Many smart home technology components are manufactured in countries outside the US. These components span almost all features including smart home control systems, AV equipment, networking supplies, security systems, and LED lighting. For some of these items, it translates to higher prices and supply chain challenges. 

As a home technology company serving Philadelphia, PA, and the Delaware Valley, it’s up to our team at Whitaker Technologies to stay ahead of the curve and provide our clients with the best possible prices, with projects completed on time and on budget. 

Here, we’ll explore how we bring great value despite potential price increases and some of the essential actions we take to limit the effects of tariffs when creating the smart home our clients dream of. 

SEE ALSO: Is Your Smart Home Integrator a Cedia Member? Here’s Why It Should!

Lessons Learned

The pandemic taught us some vital lessons when it comes to maintaining a fluid supply chain. Relying on a single supplier means there’s no safety net should that supplier falter.

To ensure we can obtain what our clients need at the best prices, we’ve established a multiple-supplier sourcing model. While slightly more complex, it reduces the risk of disruption, leverages pricing competition, and helps us stay updated on the rapidly expanding technological advancements. 

Not all smart locks come from the same place—or carry the same price tag. These remote-access devices, now common in homes, are produced everywhere from Vietnam to the EU. Knowing that helps us shop smarter, matching quality with budget and staying flexible when things shift.

Absorbing Tariffs

We partner with the industry leaders in home automation. One of these, Control4, is a subsidiary of Resideo Technologies. This company is committed to staying agile and mitigating the impact of any tariffs across its product lines. Many of the companies we partner with share this same approach.

We also look to sourcing opportunities in tariff-exempt countries as well as our own. One of the best strategies in times of uncertainty is to closely follow developments and keep a wary eye on which manufacturers are relocating production to countries without tariffs.

What You Can Do

A few steps you can take when considering a new build or upgrade include securing pricing while tariffs are reduced, exploring cost-effective alternatives, and working with an integrator who understands the complexities, challenges, and potential solutions of our current environment. 

At Whitaker Technologies, we have decades of experience navigating the best and worst of times. Through it all, we continue providing our clients with unparalleled ease of living, elevated entertainment, and enhanced beauty. To learn more about our home technology company, contact Whitaker Technologies today.