U.S. Technology Businesses and Their Customers Face Higher Costs Due to Tariffs

The technology sector, a driving force of U.S. economic growth, is facing increasingly greater risk of harm from tariffs on input materials arriving from China. It’s U.S. business and consumers that stand to be the ones paying higher prices due to trade disputes, and the technology sector is no exception. The following anecdotes from recent news stories are examples of the widespread havoc tariffs are wreaking on U.S. technology businesses.

JLab Audio

Carlsbad California

JLab is a Carlsbad, CA-based wireless earbuds and headphones maker that has offices in California, Texas and China.

Job Growth Put on Hold Due to Tariffs

"'When our government begins to charge its own companies and people with more taxes in the form of tariffs, we have put in jeopardy not just the American Dream of many small and mid-size businesses, but you put in jeopardy the people that work for them too,' said Win Cramer, CEO, Jlab Audio, a Calif.-based company and CTA member. 'These people support a growing economy, support a growing business and, most importantly, pay taxes. Pre-tariffs, JLab Audio was planning to scale up with new hires and programs to push our company's growth to another level, but now we've put all of that on hold as we need to see how everything shakes out.'"

Industry Week - 08/21/18

Gadget Industry is Bracing for Impact During Trade Dispute

"That looming trade war has particularly severe consequences for gadget startups. Often borne out of crowdfunding campaigns, these companies have typically played American demand against Chinese manufacturing know-how, focusing on emerging products like smartwatches, VR controllers and the Internet of Things. The incoming tariffs make that approach both riskier and less profitable, potentially requiring an entire industry to rethink where it makes its goods."

The Verge - 06/20/18

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