Now is the time to purchase a new computer if your old computer can’t be upgraded to Windows 11. New tariffs will make the cost of devices coming from China significantly more expensive. Let’s face it, most electronic devices come from China which means there will be significant tariffs applied to them.

My Suggestion to Wait Changed November 5

Until November 5 this year I was suggesting customers with computers that can’t be upgraded wait until October 2025 when Windows 10 finally meets its demise. My logic then was to keep your money as long as possible. Well, my recommendation has changed to making the investment prior to the incumbent taking office and tariffs being imposed. I guess my logic now is all about saving money.

If Trump does what he says, he will impose a 60% tariff on goods coming from China. This means a significant price increase on most things we purchase. Basically a tax on us, the consumer, for the things we use and need that come from China. Personally, I’m going down my list of potential needs and making those purchases now. I just received my new cell phone and tonight I will be ordering components for my other business.

What are Tariffs?

I’ve talked to a lot of people who assume the tariffs are paid by the countries they’re levied against. Tariffs are a tax on goods sold that ultimately get passed on to us, the consumer. Tariffs are calculated on the sale price of the items coming from China. For a $1.00 purchase from China, American companies will pay an additional $0.60 in tariffs. Those tariffs are added into the cost of the product here in the US.

How Tariffs Work

I pulled out some paperwork from a recent import I made for my other business and will share the numbers. Maybe it will make a little more sense for those who don’t understand how tariffs work:

Until the tariffs are implemented I will be paying the same amount I have in the past. Once the tariffs are required I will be paying an additional $426.60 because the parts originated in China. Here’s where it gets confusing for people. China doesn’t pay the tariffs. They only receive payment for the $711.00 worth of product. I am required to cough up the additional $426.60 and send that to the US government. Unfortunately for me and most electronics manufacturers China is the only source for many of the components.

How Tariffs Impact Consumers

Let’s bring it back to laptops and cell phones. The average cell phone is around $1,000.00 to the consumer and typically costs the manufacturer around $700.00 to manufacture. When the phones come into the US the companies will need to pay $420.00 per phone making their cost per phone jump from $1,120.00. We as consumers will be paying an additional $420.00 (or $1,420.00) for the same phone. Someone has to pay the tariffs and at the end of the day it’s the consumer.

Only You Can Make The Decision to Purchase

Enough said. The point of this is to make the simple suggestion that you make the right decision for you. If you think you need a new laptop, cell phone or other high value item from China now may be the best time to buy. If you can afford the outlay now you’ll potentially save from having to spend the additional money later. Financial experts call this a wise investment.

Jeromy Patriquin is the president of Laptop & Computer Repair, Inc. in Greenfield and Gardner MA. You can read more of his articles at LocalComputerWiz.com.