How U.S. Tariffs Are Driving Up Device Costs and Altering IT Procurement Strategies  

Recent U.S. trade policies have introduced steep tariffs on imported electronics. As of early 2025, a 20% tariff on many Chinese-made tech products (including laptops and smartphones) took effect. This means that organizations are now paying substantially more for the same devices than they did a year ago.

New U.S. import tariffs on technology are causing the price of common business laptops to jump significantly – often by $200 or more per device.

Source: Hungerford.tech

Such unplanned cost increases are hitting IT budgets hard. Technology manufacturers and distributors have little choice but to pass these costs on to customers – absorbing a 20–25% tariff would wipe out their thin margins. In fact, industry analysts note that for major PC makers, the added tariff costs could equal almost their entire annual profit, leaving raising prices as the “most viable path forward”. In short, businesses purchasing new laptops, mobile devices, or other hardware in 2025 are often seeing line-item prices much higher than expected. Many organizations are now forced to absorb these unexpected costs, which can be on the order of hundreds of dollars extra per device, unless they find ways to adapt their procurement strategy.

Straining IT Budgets and Procurement Cycles 

These tariff-driven price increases have immediate effects on IT budgeting and refresh cycles. Companies that allocated funds for routine device upgrades are discovering shortfalls as each device now eats further into the budget. For example, a planned refresh of 500 laptops that might have cost $500,000 last year could easily run $100,000+ more this year due to tariffs. Many IT departments are left scrambling – either asking finance for additional budget, delaying some purchases, or reducing the quantity or specs of devices to stay on budget.

Another challenge is the volatility of device hardware pricing in this tariff environment. Distributors and OEMs are sometimes unable to guarantee price quotes for more than a few days. It’s become common to see a quote for equipment expire or increase before the procurement paperwork is finished. This volatility makes traditional procurement cycles (which often involve lengthy approval and PO processes) difficult to manage. Even after committing to a purchase, organizations may face last-minute cost increases before the order ships, undermining careful planning. In short, device procurement has entered a period of unpredictability, where surprise fees and rapid price changes are the new normal. This makes device cost optimization more challenging than ever, as past pricing benchmarks no longer hold.

From a device lifecycle perspective, these unplanned costs can throw off device refresh timelines. Some businesses are choosing to extend the lifecycle of existing devices – holding onto PCs and tablets for an extra year or more – in hopes that hardware prices stabilize. Others are accelerating purchases (buying sooner than planned) to get ahead of further tariff hikes, a strategy backed by advice that delaying could mean paying more as prices continue to climb. Both approaches require careful consideration of trade-offs between immediate spending and long-term value. This is where having a partner to advise on business technology strategy and lifecycle planning is invaluable.

Optimizing Procurement in a High-Tariff Environment  

When faced with rising costs, organizations need to revisit their device procurement strategies and think creatively. Device lifecycle management and strategic sourcing take center stage in mitigating the tariff impact. Here are key approaches businesses are adopting to control costs:

• Cross-Vendor Flexibility: Many companies historically stick to a preferred PC or device brand (whether due to standardization or perceived reliability). But in the current climate, a rigid brand preference can become costly. MCPC acts as a vendor-neutral advisor, helping you evaluate side-by-side options from major OEMs to find the most price-optimized product for your needs. We often find that a comparable model from an alternate manufacturer can save significant dollars per unit without sacrificing performance or security.

• Strategic Timing and Bulk Purchasing: In a volatile market, timing purchases strategically is vital. Ordering hardware before the next scheduled tariff increase (or during a temporary tariff suspension, if one occurs) can save money. Likewise, consolidating purchases to negotiate bulk pricing or locking in a longer-term purchase agreement can blunt the impact of per-unit increases. Our team at MCPC monitors market and policy trends closely – as proactive partners, we alert clients when it’s a smart time to buy or if it’s better to wait. The goal is to avoid panic buying, but also avoid paying peak prices by planning ahead.

• Reevaluate Specifications: Another aspect of device cost optimization is ensuring you’re not over-provisioning (buying more device capability than needed). Given high costs, review the specifications required for each user role. You might find that not every employee needs a maxed-out, high-end laptop; many users can do their jobs with a mid-range model that is significantly cheaper. By tiering your device procurement (high-performance machines only for those who truly need them, standard models for others), organizations can reduce unnecessary spending.  

• Leverage Lifecycle Extension and IT Asset Management (ITAM): To cope with budget constraints, consider extending the refresh cycle for certain devices. With proper maintenance and perhaps upgrades (e.g. adding RAM or an SSD), a 3-year-old laptop might serve reliably for another year, buying time for prices to stabilize. Implementing an IT asset management program helps identify which devices can be safely extended and which ones pose risk (e.g. due to warranty expiration or performance issues). MCPC can assist with real-time asset tracking and health checks to make data-driven decisions on device retirement vs. retention. Additionally, our IT Asset Disposition (ITAD)services ensure that when you do retire hardware, you can recoup value or responsibly recycle, offsetting some costs of new purchases.

• Explore Device-as-a-Service (DaaS) or Leasing Models: Instead of large upfront purchases at today’s high prices, some organizations are shifting to leasing devices or DaaS subscriptions. This spreads costs out as an operating expense and often includes built-in refreshes and support. In a tariff-heavy environment, a leasing provider might absorb some risk of price changes. MCPC offers flexible procurement and lifecycle programs – essentially end-to-end device lifecycle solutions from procurement to retirement – designed to reduce costs and simplify IT management. By offloading device logistics to a partner, you gain predictability. We handle sourcing the devices at the best available prices and can roll them into a monthly service model if that fits your financial strategy.

Each of these strategies can help organizations optimize device sourcing despite external cost pressures. The common theme is being proactive and adaptable: rethinking long-held procurement habits, and planning device needs with both performance and price in mind. Businesses that take this agile approach will soften the blow of tariffs on their bottom line.

Thriving Through Change with MCPC 

The current tariff situation is a prime example of why agility and foresight in device planning are so important. At MCPC, we pride ourselves on being more than just a technology supplier, but proactive partners committed to achieving our clients’ business goals even in challenging conditions. We combine deep market insight with a holistic view of your IT environment to keep your device lifecycle on track and your business technology strategy aligned with budget realities.

Despite rising hardware costs, your organization can still execute successful device refreshes and expansions. We’ll help you identify the most cost-effective procurement options, anticipate and budget for price changes, and implement efficient lifecycle management practices. Our approach ensures you get the best IT performance at the lowest overall cost, even as market prices fluctuate. In fact, MCPC offers end-to-end lifecycle programs (from procurement to deployment to disposition) that are specifically designed to reduce total cost of ownership and eliminate budget surprises – exactly what’s needed in a high-tariff environment.

Ready to optimize your device strategy amid uncertainty? MCPC’s Lifecycle Management services provide the guidance and operational support to keep your IT projects moving forward without breaking the budget. We’ll help you navigate tariff impacts and make smart choices so that your devices continue to empower your workforce effectively. Contact MCPC to start a conversation about controlling costs and maximizing the value of your devices – no matter what external challenges arise, we engineer outcomes that drive your business forward.