Importance Score: 72 / 100 🔴
Framework Announces Price Adjustments for US Customers Due to New Tariffs
Framework, a consumer electronics company, has announced price and availability changes for its US customers in response to recently imposed tariffs. The adjustments, stemming from a new 32% import tariff on products manufactured in Taiwan, will affect Framework Laptops and related products. While the company is temporarily absorbing some of the increased costs, prices for in-stock laptops and new pre-orders will rise by approximately 10% for US consumers. Sales of the lowest-priced configurations are temporarily suspended in the US, and the pre-order launch of Framework Laptop 12 in the US is postponed as the company navigates these tariff implications. Framework is closely monitoring tariff developments and will make further modifications as needed. Pricing and availability for customers outside the US remain unchanged.
Navigating New Challenges
The company acknowledged the difficulties these changes pose for customers and their mission to reshape consumer electronics. Framework emphasized its commitment to transparency and navigating these challenges while continuing to deliver innovative products. This situation, while unwelcome, is viewed as another hurdle in the journey of the company, reinforcing their dedication to open communication and finding clarity amidst complexity.
Specific Product Impacts and Pricing Changes
The newly implemented 32% import tariff directly affects Framework Laptops, Mainboards, Framework Desktop, and a selection of modules manufactured in Taiwan. Consequently, prices for these items will increase by 10% in the US, with potential for further increases if tariffs persist. Modules manufactured in China are subject to even higher tariffs, ranging from 104% to 129%. Framework is partially mitigating these tariffs but will also implement price increases on affected modules, varying by category. Storage products from Western Digital, manufactured in Malaysia and now facing a 24% tariff, will also see price increases up to 10%. Framework suggests customers consider purchasing storage directly from Western Digital or other sources for DIY editions to potentially reduce costs.
Immediate Implementation and Future Adjustments
These pricing modifications are effective immediately in the US, impacting both in-stock purchases and new pre-orders. The combination of tariff absorption and price adjustments serves as a temporary strategy while the company assesses the evolving tariff landscape. Should tariffs be lifted, pre-orders yet to be fulfilled will revert to their original prices. However, prolonged or escalating tariffs may necessitate further price increases in the US. The approach to existing US pre-orders for Framework Laptop 13 (AMD Ryzen AI 300 Series) and Framework Desktop is still under review regarding tariff impact, and customers will be contacted for confirmation before any price adjustments are finalized. Editing existing US pre-order configurations is temporarily disabled, but this functionality will be restored at the pre-order finalization stage. Pre-orders remain fully refundable. Updates regarding the US pre-order timeline for Framework Laptop 12 will be provided as available. Manufacturing capacity is being allocated to ensure US orders can ship alongside international orders.
Temporary Pause on US Parts and Modules
Ordering of parts and modules shipping from the New Jersey warehouse is temporarily suspended for US customers. This pause allows for the implementation of changes to segregate pricing between laptop configuration components and items in the Framework Marketplace. Upon reopening, items already in US inventory will retain their original pricing, while updated pricing will be applied to new imported inventory. Canadian orders dispatched from the US warehouse will, for the present, maintain their original CAD pricing. However, future price adjustments may be necessary for items originating from China, which are subject to certain tariff impacts.
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Understanding Tariff Mechanics
To provide clarity on the operational aspects, Framework explained the mechanics of tariffs, emphasizing an apolitical perspective. Tariffs are determined by the country of origin and the Harmonized Tariff Schedule (HTS) code of imported goods. Framework ships products Delivered Duty Paid (DDP), meaning the company covers tariffs upon customs clearance and incorporates these costs into product pricing. Tariffs are calculated based on the product’s value at import, representing the importer’s cost, rather than the final consumer price. The country of origin is defined as the location of “substantial transformation,” which, for computers, US Customs designates as the place of main circuit board assembly.
Strategic Manufacturing Decisions
Framework cited its foresight in anticipating increasing trade complexities five years ago when establishing manufacturing and logistics in Taiwan. This strategic decision aimed to mitigate potential impacts from US-China trade tensions, which at the time included tariffs on imports from China, excluding laptops but including laptop parts. By assembling Mainboards in Taiwan since 2022, Framework laptops are designated as Taiwanese in origin. This strategy effectively shielded the company from earlier tariff rounds on Chinese imports. However, the current tariff round affects all nations with significant electronics manufacturing infrastructure. Framework is actively exploring options to relocate Mainboard assembly to the US, though current manufacturing partners lack the immediate infrastructure. Prior to the current tariffs, Framework was already in the process of shifting some module production from China to regions with lower tariffs like Thailand and Indonesia. While relocating manufacturing offers a long-term solution, it is not feasible to implement before the immediate impact of the newly enacted tariffs.
Commitment to Long-Term Sustainability
Ultimately, these price and availability adjustments are addressed within the context of Framework’s long-term vision and product longevity. The company highlighted the strength of its Supply Chain and Logistics teams in preparedness for disruptions, and their active exploration of solutions to restore standard US fulfillment. Framework pledged to provide updates on developments and solutions as they emerge, reiterating its ongoing commitment to transparency and customer communication. The company expressed gratitude for continued customer support throughout this evolving situation.