Smart home device manufacturers are bracing for chaos — again
2 min read
Summary
Several US-based smart home manufacturers are likely to face supply chain havoc as a result of President Trump’s latest tariffs on Chinese imports.
While the newly announced 90-day pause on tariffs from non-retaliatory countries may dampen the confusion caused by the new taxes, the tariffs that have already been imposed on Chinese imports and those planned on Vietnamese imports are likely to cause significant disruption.
Even manufacturers that moved manufacturing to other countries are likely to face difficulties as the new tariffs on products from Vietnam, the Philippines, and other countries, which previously manufactured US company products, will increase the struggles for smaller businesses and start-ups.
Companies are likely to increase prices as a result of the tariffs, which will mean higher prices for smart home devices including lights, locks, thermostats, and robot vacuums.
Jennifer Kent, industry analyst at Parks Associates, said: “The perception that smart home devices are not affordable is the number one barrier to purchase for households who neither currently own nor intend to buy smart home products.”
The increased prices are likely to lead to fewer sales of smart home devices, which could affect purchasers’ willingness to buy such products in the future.