China is the second largest source of imported goods.
SAN ANTONIO — The tariffs on China will have major impacts on many mom and pop shops in San Antonio. Those business owners will have to hike up their prices in order to keep their cash books in the black.
China is the second largest source of imported goods, Mexico being number one. The 125% tariff being placed on China will cause a sharp increase in most electronics.
“Luckily I source a lot of things inside the U.S. but they’ll creep up in price too probably,” said Keith Jetton who is the owner of Jets PC LLC where they build, sell, and repair computers.
Jetton said hard drives went up significantly overnight.
“I bought one the other day for $56, and now they’re $62, $63. So, yeah, that’s already creeping up already,” he said.
With the new tariff increase announced Wednesday, a laptop that used to cost $400 to import and would sell for about $571 could jump to around $1,008 with a 125% tariff.
According to supply chain experts, even if importers absorb 95% of the tariff, the small portion passed on still raises costs enough that, after the retailer’s markup, the final price to consumers rises significantly.
“Just have to watch, you know, what we buy and what we sell it for to keep the customer happy too,” Jetton said.
Computers and computer parts aren’t the only products that will be dramatically affected. iPhones, TVs, keyboards, laptops, microwave ovens, and earbuds will also be impacted.
“If you can afford it and you find something you like, it’s all in a price today beats the guessing on the price tomorrow, because prices go up faster than they ever come down,” Jetton said.
He also said that if the tariffs stay in place for the long term, it’ll take a while to spool up a factory in the U.S. that is capable of making other computer parts like a motherboard and video cards.