Key Takeaways
1. Framework has paused sales of two laptop models in the US due to new 10% tariffs affecting electronics from Taiwan.
2. The company stated that the pricing was based on previous 0% tariffs, making it unfeasible to sell the least powerful model without incurring losses.
3. Current laptop models with the Intel Ultra 7 processors are still available at discounts, while those with the AMD 7640AU processor remain listed with a slight price reduction.
4. Other companies, including Nintendo and Jaguar Land Rover, are also reacting to the tariff hike by delaying product launches and reassessing strategies.
5. The tariff impact is widespread, with luxury brands like Rolex and automotive manufacturers like Stellantis pausing operations and shipments.
Modular laptop maker has shared on their X account that they are halting sales in the US due to new tariffs. Framework indicated that sales have been paused for two Framework Laptop 13 models that include Intel’s Core Ultra 5 125H and AMD’s Ryzen 5 7640AU.
Pricing Adjustments
In a follow-up post (as seen on Engadget), the company explained that their pricing was based on previous tariffs, which were 0% for Taiwan. With the new 10% rate, they would end up selling their least powerful model at a loss.
Framework also highlighted that other electronics companies have done similar calculations, although not all have been transparent about their findings.
Current Listings
As of now, the SKUs with the Ultra 5 125H seem to be taken down from the listings, but the Ultra 7 155H and Ultra 7 165H models are available at a discount of 8%. The units with the AMD 7640AU processor are still listed, with a price reduction of 4%. Additionally, both variations of the 7840U SKUs are currently available at 13% and 7% off.
Framework isn’t the only one responding to the new tariffs. Nintendo has recently postponed the pre-orders for the Switch 2 indefinitely as a result of the tariff hike. British car manufacturer Jaguar Land Rover has also stopped shipments to reassess their strategies. Jaguar is among several car makers, including Audi, Porsche, Lotus, and Volkswagen, that have temporarily halted shipments.
Industry Reactions
Luxury watch brands like Rolex and Breitling have also declared a pause. Stellantis, which owns Fiat Chrysler and PSA Group, has temporarily shut down its factories in Canada and Mexico.
Source:
Link
