How tariffs affect gadget manufacturers



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Breakfast co-founder and Design Manager Andrew Zolty explains that fees are becoming a problem. He and his team build large-scale facilities that are often placed in museums, lobbies or wherever cool and connected art can go. The ordered parts are assembled by hand, usually at Breakfast's Brooklyn, New York office, where the team imports from China, aluminum, steel and printed circuit boards, and uses these parts. for the realization of their works. With the recent tariffs imposed on all these materials, Zolty says the costs are going up and the team will have to raise their prices.

"It's a bit of an awakening," he says. "Even we were watching the news, we did not think about it until we had received the bill. We're just like, "All right, we have to increase our costs because we can not just eat that kind of stuff."

Zolty says that almost every item on which his team sits to produce products comes with a tariff. But although they cost him money, higher prices do not encourage him to move into the manufacturing sector. Aluminum and steel come from China regardless of the application, he says, so tariffs still have to be paid, even for a product assembled in the United States.

The team considered relocating other manufactured products abroad to avoid importing taxed products. Last week, President Trump raised import taxes by 25% on billions of dollars worth of Chinese goods, while China fought back with additional tariffs on US imports of $ 60 billion in China. The trade war between the two countries is continuing, apparently without any agreement in sight.

Manufacturers of independent gadgets that manufacture their products in the United States are among the most affected. Big tech companies, like Apple, have avoided the burden of tariffs and also have enough money to absorb the extra cost. Small creators are the ones who can least afford to pay an extra tax, and they are the ones who pay the price. Soon, consumers could also start paying for it.

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