Proposed Mexico Tariff Would Impact HP, Lexmark
A proposed 5-percent tariff on goods made in Mexico and imported into the United States would hurt tech companies such as Dell, HP Inc., and Hewlett-Packard Enterprises, according to Bloomberg.
Last week, U.S. President Donald Trump said the United States would impose a 5-percent on goods imported from Mexico beginning June 10th if the government of Mexico does not stop the flow of migrants and asylum seekers traveling from Mexico into the United States. Trump had also said the 5-percent tariff could rise to 25-percent by October 2019 if Mexico is seen as not complying.
HP Inc. – which is already having to deal with tariffs on its products made in China -manufactures some PCs and printers in Mexico. It says it has a diverse global supply chain that would help reduce the risks of the tariffs.
“We share industry concerns that broad-based tariffs are putting consumers on the front lines of a trade war by increasing the cost of electronics,” an HP spokesman said. “We are actively monitoring the situation and will continue to work with the U.S. administration to advocate for the best interests of customers, partners and consumers.”
Another company in the office-imaging industry that has production in Mexico is Lexmark International, which makes printer supplies such as toner cartridges in Mexico. Several firms also make remanufactured, third-party toner cartridges in Mexico.