{"id":64530,"date":"2025-04-17T12:21:59","date_gmt":"2025-04-17T19:21:59","guid":{"rendered":"http:\/\/www.enxmag.com\/twii\/?p=64530"},"modified":"2025-04-17T12:22:01","modified_gmt":"2025-04-17T19:22:01","slug":"hot-takes-tariffs-part-two-of-short-and-long-term-views","status":"publish","type":"post","link":"https:\/\/www.enxmag.com\/twii\/the-week-in-imaging-twii\/editors-blog\/2025\/04\/hot-takes-tariffs-part-two-of-short-and-long-term-views\/","title":{"rendered":"Hot Takes: Tariffs, Part Two of Short- and Long-Term Views"},"content":{"rendered":"\n
\"\"<\/figure><\/div>\n\n\n\n

If the last few weeks\u2014and indeed, since the beginning of President Trump\u2019s second administration\u2014has shown us anything, it\u2019s to expect the unexpected. When it comes to tariffs, the only certainty now is that those levied against Chinese imports remain in place. A 90-day pause is in effect for the other countries, allowing them time to hammer out agreements with the United States. Straying beyond that would call for too much speculation.<\/p>\n\n\n\n

Whether we are in the eye of the tariffs storm or just beginning to feel its wrath, it is clear that manufacturers and other providers to the industry have already baked in price increases in anticipation. We\u2019re continuing our Hot Takes reaction series with a handful of observations being made by our dealer friends.<\/p>\n\n\n\n

Mason Smith, MTS Office:<\/strong> Here are a few thoughts.<\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n
  • We have reaction from two out of three of our manufacturers recently with price increases hitting in April at start of Q2.\u00a0<\/li>
  • My view is it will affect all manufacturers so [dealers] won\u2019t have a true competitive advantage for a long period of time.\u00a0 Unfortunately, that cost will be passed down to the clients and affect dealer margin in the short term.<\/li>
  • We made some large inventory purchases at the end of Q1 to be able to have some lower cost machines heading into Q2.<\/li>
  • Biggest concern I have is that it could create some additional supply chain issues in the future.\u00a0 The pandemic hopefully helped facilitate decentralized manufacturing (not all eggs in one basket) so hopefully the manufacturers can pivot quickly.\u00a0 We really do not want to see inventory crunched again as that creates bigger issues than any price or tariff-related increase.<\/li>
  • Potentially with the White House pushing for lower rates from the Fed, it can assist eventually with lower lease rates to offset some of the tariffs.<\/li>
  • Dealers must be diligent in increasing service contract pricing to absorb the added cost of equipment, parts, supplies and labor.\u00a0It is a balance of customer expectations and economic realities.<\/li>
  • Nothing that we do is less expensive than it was back in 2020.<\/li><\/ul>\n\n\n\n

    Ultimately, I have confidence that after some volatility with the new administration, things will settle back down a bit once countries, manufacturers and dealers know exactly where we stand.  Hopefully it is a short period of volatility and then the government focuses on other economic policies such as long term tax reform\/cuts.<\/p>\n\n\n\n

    \"\"<\/figure><\/div>\n\n\n\n

    Chip Miceli, Pulse Technology:<\/strong> Right now, there\u2019s a noticeable sense of hesitation in our industry\u2014many are essentially \u201csitting on their hands\u201d as we all try to anticipate how proposed tariffs may impact our operations.<\/p>\n\n\n\n

     On the supply side, we\u2019re seeing a surge in purchasing activity. Dealers and companies alike are stocking up on supplies out of concern for what the tariffs might bring. Much of our supply chain traces back to China, so we fully expect that any tariff changes will touch us directly. What remains unknown is the timing.<\/p>\n\n\n\n

    Manufacturers are approaching the situation in varying ways. Some, like Sharp, Kyocera and Canon, have yet to communicate clear guidance. Others, like Epson, have already taken decisive action\u2014announcing a 24% price increase moving forward and got it off the table on Monday. This signals a potential trend and gives us a glimpse into what we may be facing.<\/p>\n\n\n\n

    The first quarter was particularly tough on manufacturers. Many didn\u2019t hit their quotas and turned to dealers like us for increased purchases. We\u2019ve heard that some manufacturers have stockpiled equipment, with hundreds of machines currently sitting in warehouses.<\/p>\n\n\n\n

    In theory, this surplus might allow for a buffer against immediate tariff impact. However, the long-term concern is real: once these machines are sold, and we need to reorder, we may be facing significant increases\u2014especially if the tariff issue hasn\u2019t been resolved.<\/p>\n\n\n\n

    A financial advisor outside of our industry recently offered a piece of advice: begin factoring anticipated tariff costs into every deal we close now. While that\u2019s not a strategy we\u2019re currently adopting, it\u2019s a sobering reflection of just how much uncertainty we\u2019re all grappling with.<\/p>\n\n\n\n

    Ultimately, everyone is waiting to see what President Trump does next. His approach seems unpredictable\u2014one moment threatening tariffs, the next stepping back. While the broader goal of securing better trade deals for the U.S. is commendable, the road to that outcome is likely to create turbulence for our industry in the months ahead.<\/p>\n\n\n\n

    \"\"<\/figure><\/div>\n\n\n\n

    Hunter Woolfolk, DOCUmation:<\/strong> We\u2019ve felt a shift in customer behavior; many who delayed upgrades after COVID are starting to act, and the conversation around tariffs is adding a sense of urgency. While it\u2019s not a full-blown rush, momentum is picking up. IT decisions are taking a bit longer\u2014possibly a result of tax season\u2014but overall activity is trending ahead of 2024. It seems that businesses are recognizing that delaying decisions just isn\u2019t sustainable.\u201d<\/p>\n\n\n\n

    \"\"<\/figure><\/div>\n\n\n\n

    Joe Blatchford, Image 2000: <\/strong>The amount of chaos this whole tariff situation has created is just amazing! The overall goal of a tariff is to increase the price of goods and services purchased from another country. The concept is designed to make foreign goods less attractive and domestic goods more desirable. What the Trump administration is doing will eventually work, at least in my opinion.<\/p>\n\n\n\n

    Unfortunately, in the short-term, costs will go up for any products coming from China, Vietnam, etc. This will definitely have a direct impact on the products we provide here in the United States. My fear is that most manufacturers will be raising their prices to combat the tariffs, but if the tariffs are removed, that pricing will stay the same. We have already seen some manufacturers remove backend rebates and credits, which I believe will have a negative impact on overall purchasing.<\/p>\n\n\n\n

    Unfortunately, only time will tell how this whole situation works out.<\/p>\n\n\n\n

    \"\"<\/figure><\/div>\n\n\n\n

    Barry Simon, Datamax:<\/strong> Right now it is still a little early to tell what we are going to do until the manufacturers come out with their prices.<\/p>\n","protected":false},"excerpt":{"rendered":"

    If the last few weeks\u2014and indeed, since the beginning of President Trump\u2019s second administration\u2014has shown us anything, it\u2019s to expect the unexpected. When it comes to tariffs, the only certainty now is that those levied against Chinese imports remain in place. A 90-day pause is in effect for the other countries, allowing them time to hammer out agreements with the United States. Straying beyond that would call for too much speculation. Whether we are in the eye of the tariffs storm or just beginning to feel its wrath, it is clear that manufacturers and other providers to the industry have already baked in price increases in anticipation. We\u2019re continuing our Hot Takes reaction series with a handful of observations being made by our dealer friends. Mason Smith, MTS Office: Here are a few thoughts. We have reaction from two out of three of our manufacturers recently with price increases hitting in April at start of Q2.\u00a0 My view is it will affect all manufacturers so [dealers] won\u2019t have a true competitive advantage for a long period of time.\u00a0 Unfortunately, that cost will be passed down to the clients and affect dealer margin in the short term. We made some large inventory purchases at the end of Q1 to be able to have some lower cost machines heading into Q2. Biggest concern I have is that it could create some additional supply chain issues in the future.\u00a0 The pandemic hopefully helped facilitate decentralized manufacturing (not all eggs in one basket) so hopefully the manufacturers can pivot quickly.\u00a0 We really do not want to see inventory crunched again as that creates bigger issues than any price or tariff-related increase. Potentially with the White House pushing for lower rates from the Fed, it can assist eventually with lower lease rates to offset some of the tariffs. Dealers must be diligent in increasing service contract pricing to absorb the added cost of equipment, parts, supplies and labor.\u00a0It is a balance of customer expectations and economic realities. Nothing that we do is less expensive than it was back in 2020. Ultimately, I have confidence that after some volatility with the new administration, things will settle back down a bit once countries, manufacturers and dealers know exactly where we stand.  Hopefully it is a short period of volatility and then the government focuses on other economic policies such as long term tax reform\/cuts. Chip Miceli, Pulse Technology: Right now, there\u2019s a noticeable sense of hesitation in our industry\u2014many are essentially \u201csitting on their hands\u201d as we all try to anticipate how proposed tariffs may impact our operations.  On the supply side, we\u2019re seeing a surge in purchasing activity. Dealers and companies alike are stocking up on supplies out of concern for what the tariffs might bring. Much of our supply chain traces back to China, so we fully expect that any tariff changes will touch us directly. What remains unknown is the timing. Manufacturers are approaching the situation in varying ways. Some, like Sharp, Kyocera and Canon, have yet to communicate clear guidance. Others, like Epson, have already taken decisive action\u2014announcing a 24% price increase moving forward and got it off the table on Monday. This signals a potential trend and gives us a glimpse into what we may be facing. The first quarter was particularly tough on manufacturers. Many didn\u2019t hit their quotas and turned to dealers like us for increased purchases. We\u2019ve heard that some manufacturers have stockpiled equipment, with hundreds of machines currently sitting in warehouses. In theory, this surplus might allow for a buffer against immediate tariff impact. However, the long-term concern is real: once these machines are sold, and we need to reorder, we may be facing significant increases\u2014especially if the tariff issue hasn\u2019t been resolved. A financial advisor outside of our industry recently offered a piece of advice: begin factoring anticipated tariff costs into every deal we close now. While that\u2019s not a strategy we\u2019re currently adopting, it\u2019s a sobering reflection of just how much uncertainty we\u2019re all grappling with. Ultimately, everyone is waiting to see what President Trump does next. His approach seems unpredictable\u2014one moment threatening tariffs, the next stepping back. While the broader goal of securing better trade deals for the U.S. is commendable, the road to that outcome is likely to create turbulence for our industry in the months ahead. Hunter Woolfolk, DOCUmation: We\u2019ve felt a shift in customer behavior; many who delayed upgrades after COVID are starting to act, and the conversation around tariffs is adding a sense of urgency. While it\u2019s not a full-blown rush, momentum is picking up. IT decisions are taking a bit longer\u2014possibly a result of tax season\u2014but overall activity is trending ahead of 2024. It seems that businesses are recognizing that delaying decisions just isn\u2019t sustainable.\u201d Joe Blatchford, Image 2000: The amount of chaos this whole tariff situation has created is just amazing! The overall goal of a tariff is to increase the price of goods and services purchased from another country. The concept is designed to make foreign goods less attractive and domestic goods more desirable. What the Trump administration is doing will eventually work, at least in my opinion. Unfortunately, in the short-term, costs will go up for any products coming from China, Vietnam, etc. This will definitely have a direct impact on the products we provide here in the United States. My fear is that most manufacturers will be raising their prices to combat the tariffs, but if the tariffs are removed, that pricing will stay the same. We have already seen some manufacturers remove backend rebates and credits, which I believe will have a negative impact on overall purchasing. Unfortunately, only time will tell how this whole situation works out. Barry Simon, Datamax: Right now it is still a little early to tell what we are going to do until the manufacturers come out with their prices.<\/p>\n","protected":false},"author":166,"featured_media":64531,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[80,1650,82,1638],"tags":[1186,3926,4275,3521],"_links":{"self":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/64530"}],"collection":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/users\/166"}],"replies":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/comments?post=64530"}],"version-history":[{"count":1,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/64530\/revisions"}],"predecessor-version":[{"id":64532,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/64530\/revisions\/64532"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media\/64531"}],"wp:attachment":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media?parent=64530"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/categories?post=64530"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/tags?post=64530"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}