In recent years, the imposition of tariffs on imports has significantly impacted various industries, including technology hardware. With the US government announcing a 25% tariff on Canadian imports, businesses in both Canada and the US are facing higher costs for essential IT infrastructure such as servers, networking gear, and electronics. This article explores how these tariffs may affect technology hardware prices and why companies should consider upgrading their workstations, servers, and other hardware now rather than waiting.
Higher Hardware Prices and Supply Chain Delays
Canada relies heavily on imports from the US and China for its IT infrastructure. The tariffs are driving up costs and creating supply chain bottlenecks, leading to higher prices and delays in obtaining necessary hardware. For businesses, this means that the cost of upgrading or replacing outdated equipment is likely to increase over time. By acting now, companies can avoid the anticipated price hikes and ensure they have the necessary hardware to support their operations.
Rising Software Subscription Costs
In addition to hardware, the tariffs are also affecting software subscription prices. Many SaaS providers have already raised their prices due to post-COVID inflation, and further increases are expected as hardware costs rise. Upgrading hardware now can help businesses lock in current software subscription rates and avoid future price hikes.
Tariffs on Small Package Shipments
Cross-border shipping between Canada and the US is becoming more expensive due to the tariffs, making Canadian e-commerce businesses less competitive in the US market. For companies that rely on importing small packages of IT hardware, this means higher costs and potential delays. Upgrading hardware now can help businesses mitigate these challenges and maintain their competitive edge.
Impact on Small and Medium-Sized Businesses (SMBs)
Small and medium-sized businesses (SMBs) in Canada are particularly vulnerable to the effects of tariffs. These businesses often operate with tighter budgets and less flexibility compared to larger enterprises. The increased costs of technology hardware and potential delays in obtaining necessary equipment can significantly impact their operations and growth. By upgrading their hardware now, SMBs can avoid the anticipated price hikes and ensure they have the necessary IT infrastructure to support their business needs.
The imposition of tariffs on technology hardware imports is creating significant challenges for businesses in Canada and the US. Higher prices, supply chain delays, and rising software subscription costs are just a few of the issues companies are facing. By upgrading workstations, servers, and other hardware now, businesses can avoid the anticipated price hikes, ensure they have the necessary IT infrastructure to support their operations, and maintain their competitive edge in the market.
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