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Tariff Impact

October 16, 2018

 

Dear trusted partner,

 

As you may be aware, on September 24, 2018, The United States imposed a new 10% tariff on roughly $200 billion worth of goods exported from China, which includes electronics. While ATEN manufactures most of our products in Taiwan, some of our products are made in China and as such some of our KVM, IT connectivity and management solutions, pro A/V, and green energy solutions have been impacted. This could affect pricing for your enterprise, broadcasting and media, education, government, and transportation customers.

The most common reaction for companies manufacturing in China, including many of our competitors, has been to raise prices by 10%, passing those costs to their partners and customers. Unlike our competitors, ATEN has decided to maintain our current price list. We want our partners to know in Q4 we will absorb the cost of the tariff increase. ATEN North America has several key strategic partners where we have long-standing agreements in place and we do not want to be disruptive.

As of January 1, 2019, when the tariff increases to 25%, we may need to pass some of that cost onto our partners. We are not sure how much this will be as we are currently in 2019 planning mode; however, our intent is not just to raise pricing by 25% for the products that are impacted. We are trying to mitigate as much of the tariff impact to partners as possible. However, if you are intending to purchase ATEN products, you may want to do that before December 31 to secure the lowest prices. As a company, we are looking at how we can modify our manufacturing to do more in our Taiwan headquarters.

As a 100% channel-focused company, our partners can expect us to proactively communicate any pricing changes we plan to implement. ATEN North America stands by its mantra to partners on being totally transparent, flexible, and easy to do business with.

 

Thank you for your business and partnership.

 

 

Holly Garcia

Vice President, ATEN Technology – North America

 

Press Contact

Angela Tuzzo

MRB Public Relations for ATEN

+1 732.758.1100 x. 105

atuzzo@mrb-pr.com