Acer announces 10% price increase – other manufacturers could follow suit

The fact that trade tariffs rarely leave consumers unscathed has now been demonstrated once again: Acer will raise the prices of hardware produced in China by 10%. This makes the company the first major manufacturer to react publicly to the new US tariffs under Trump.

CEO confirms: Production in China is becoming unprofitable

According to reports in the Taiwan Economic Daily, Acer CEO Jason Chen has made it clear that the additional import duties will significantly increase production costs. These additional costs will – unsurprisingly – be passed on to the end customer. The price increase should be felt in the US markets from March when the new batches go on sale.

Consequences for the market: ASUS, HP and Dell under pressure to act

Acer may have been the first company to react officially, but it is unlikely that the competition will stand idly by. ASUS, HP and Dell are likely to make similar price adjustments once they can no longer benefit from previously imported stock. It is also known that some companies, including Microsoft, have already adjusted production and supply chains at an early stage in order to circumvent the new tariffs, at least temporarily.

Relocation of production as a long-term solution?

To avoid permanent exposure to US tariffs, Acer is considering relocating production. While other Asian countries are an option, production in the USA is also to be examined. This could position the company well strategically – but would involve considerable restructuring costs.

US trade policy causes unrest

The US tariff rate on China, Mexico and Canada is currently 10%, but further increases cannot be ruled out. If a full-scale trade war breaks out, electronics prices could rise across the board – a development that will ultimately be borne by the consumer. It remains to be seen if and when the competition will follow suit. One thing is certain, however: the effects of the new tariffs will be felt across the entire electronics sector in the long term.

Source: Taiwan Economic Daily