The recent announcement of wide-reaching tariffs by the Trump Administration has introduced a new layer of uncertainty for global supply chains. For the IT industry in particular – where a significant volume of componentry is manufactured in South East Asia – these changes could have measurable implications.
While the full impact on the Australian market remains to be seen, Touchpoint is keeping a close watch and has outlined a few key expectations to help our customers prepare:
- No immediate impact from Australian tariffs
Both major political parties in Australia have signalled that they do not intend to respond with reciprocal tariffs on US goods. This suggests that, regardless of the outcome of the upcoming federal election, we’re unlikely to see locally driven pricing shifts. - Possible exchange rate effects
If the US sees a reduction in demand for imported goods as a result of tariffs, this could reduce the flow of USD into global currency markets – potentially placing upward pressure on the US dollar. Since most IT hardware is priced in USD, any movement in the exchange rate could affect local pricing for Australian buyers. - Offsetting forces on currency markets
That said, tariffs may also dampen foreign investment in the US, which would have a counterbalancing effect on the currency. While it’s difficult to predict the exact outcome, it’s unlikely that investor confidence in US markets will increase under current conditions. - Direct impact on US-based manufacturing
The most direct price pressure may come from US-based manufacturers facing higher input costs. Companies that manufacture hardware within the United States – for reasons such as TAA compliance – are already flagging potential changes to their pricing. For example, vendors like Crystal Rugged have advised that prices may fluctuate as the tariff situation evolves.
Although the full impact is still developing, there are clear signs that cost pressures are more likely to increase than decrease in the short term. For organisations that already have valid quotes or are planning future purchases, it may be worth considering whether those decisions can be brought forward to mitigate potential pricing increases.
As always, Touchpoint will continue to monitor developments and support our customers with transparent advice. If you’d like to discuss your purchasing plans feel free to reach out to our team at solutions@touchpoint.com.au or call 02 8424 3500.