<\/p>\n
Adafruit Industries – an electronics hardware company – recently recently shared with its customers why it is hiking its prices after sharing its latest bill that included a $36,126.46 tariff charge. The company shared on its blogpost (quoted by USA Today), that while its tariff bills have ramped up over the last two months it only recently received its first \u2018big bill\u2019.\u00a0<\/p>\n<\/div>\n
It explained that these products were booked and manufactured many months ago, before the US President Donald Trump’s 145% tariff on China was set. The New York based company further added that it will have to pay these tariff taxes before selling any of the products, which will have \u00a0big impact on its cash flow.\u00a0<\/p>\n<\/div>\n
\u201cSince they are electronics products\/components, there\u2019s a chance we may be able to request reclassification on some items to avoid the 125% \u2018reciprocal\u2019 tariff, but there\u2019s no assurance that it will succeed, and even if it does, it is many, many months until we could see a refund.\u201d the company wrote in its blogpost.<\/p>\n<\/div>\n
\u201cWe\u2019ll have to increase the prices on some of these products, but we\u2019re not sure if people will be willing to pay the higher cost, so we may well be \u2018stuck\u2019 with unsellable inventory that we have already paid a large fee on.\u201d it further added.<\/p>\n<\/div>\n