Like most tech companies, ASUS is working to deal with the increasing tariffs the United States has decided to impose on products imported from China. In a recent meeting with investors (thanks Tom’s Hardware), the company admitted that these new taxes could lead to higher prices for their products.
“We will try to limit these costs to within a reasonable level,” said one of the company’s co-CEOs. “However, as we make further adjustments to production lines, it may become possible that we need to offset some of these costs to our clients,” which means that their products may cost more.
The Impact of Tariffs on Production
ASUS points out that the rising tariffs do not only mean higher costs for companies bringing products from China. Companies that choose to move their production lines to avoid these tariffs will also need to spend on infrastructure, which could lead to price increases as well.
To the disappointment of the U.S., many of these companies are looking to shift their production to other countries, not necessarily to the United States. For example, ASRock is planning to manufacture its products in Vietnam and Taiwan to avoid the tariffs on China-made goods.
ASUS Aims to Keep Prices Competitive
In a time when most manufacturers will likely raise their prices, those who can keep their prices steady or raise them less significantly will stand out to customers. ASUS claims that this is its goal.
“We are seeing that some brands are already starting to make adjustments to their retail prices to cover their costs,” the co-CEO said. “But for Asus, we will do our best to limit the impact of these changes for our customers, we will try to maintain our offer as the most competitive in terms of both service quality and pricing.”
