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Security Industry Impacts from U.S.-China Trade War Increase


International. Steve Surfaro, chair of the Public Safety Task Force for the Security Industry Association (SIA), examines the additional impacts of the U.S .-China trade war.

The Trump administration finalized the list of products that allow the sale of this initial round of tariffs, which includes goods that have an annual trade value of approximately $34 billion.

The latest round, which went into effect on July 6, is very varied and includes everything from consumer goods such as fruits, nuts, textiles and furniture to industrial computers, components and circuit boards.

The general classification of "Automatic Data Processing Machines" includes all categories and I/O devices used in data processing and storage. In addition, the naming of circuit board assemblies and components can affect emerging home security and DIY markets using single-board microcomputers, such as Raspberry Pi, Arduino, and Odroid products.

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Payment terminals at ATMs are also listed, which will affect both the banking and retail sectors that POS terminals, touch screens and mobile POS devices are often integrated with surveillance and burglar alarm systems.

The U.S. domestic gas separation industry should get a boost from new oxygen, nitrogen, argon and hydrogen tariffs, which impact the manufacturing and healthcare verticals. However, precious earth metals such as tantalum, titanium and silver are subject to tariffs; the most important are refined copper bars and stocks, which are sure to impact the global industrial Ethernet cable market, which now has an annual growth rate of 17.31 percent by 2020.

However, the longer-range item listed is simply entered as "burglar alarm systems." Here are other additional products, in decreasing order of high impact that will be affected by the tariffs:

(Note: The official document of the Office of the U.S. Trade Representative (USTR-2018-0005) is classified into 8-digit subheadings, so where possible, the eight-digit harmonized Air Tariff (HTS) number will be listed in parentheses.)

High impact:

  • Copper wire, stock; used for Ethernet cable (7407.10.50, 7408.11.30, 7411.10.10): Increase the cost of CAT5E, CAT6A cable using imported Cu material.
  • Electric fire or burglar alarms and similar appliances (8531.10.00): two of the largest product segments used for security, security and facility management professionals.
  • Printed circuits, without elements (8534.00.00): wide use among industrial, residential and DIY security market segments.
  • Projection lenses, mounted, and their parts and accessories, for cameras, projectors or amplifiers or photographic reducers (9002.11.40) and lens lenses for use in closed circuit television cameras / lenses without warning, n / obj. , For use in closed circuit television cameras (9002.11.40 and 9002.11.60 / 9002.90.85: Affects CCTV and network surveillance cameras.
  •  

Medium impact:

  • Unit suitable for physical incorporation into the automatic data processing machine (8471.80.40): computers, servers, power supply, I/O, CPU, unit components now included in the tariff.
  • Cards incorporating a magnetic stripe (8523.21.00): Although most of the time and assistance and physical access control industry promote proximity cards, there are still many end users and government agencies using "magnetic stripe" readers and cards.
  • LED and LCD panels, parts and PCBs of electrical sound or visual signaling appliances (8531.20.00 8531.90.30 8531.90.90): Many solution providers have analog and network speakers and speakers, and horn/strobe signaling devices in their product range.
  • Other parts of microphones and bases, speakers, headphones and headphones nesoi, electric amplifiers and sets of electric sound amplifier (8518.90.81).

Low impact:

  • ATMs (8472.90.10): Impacts both the banking and retail sectors as it includes POS terminals, touch screens and mobile POS devices, often integrated with surveillance and burglar alarm systems.
  • Lead-acid batteries (8507.20.80): used in solar, anti-theft and fire alarm systems.
  • Heating elements mounted only with insulated connectors and simple electrical connectors, used to prevent ice or thawing (8516.80.40, 8516.80.80): Impacts weatherproof camera housings and other control boxes.
  • Television cameras, digital cameras and camcorders. Film cameras (8525.80.30, 8525.80.50, 9007.10.00): Although a small part of the security industry uses "broadcast" or cinematic quality cameras to broadcast events, this sub-segment is growing.
Santiago Jaramillo
Santiago JaramilloEmail: [email protected]
Editor
Comunicador social y periodista con más de 15 años de trayectoria en medios digitales e impresos especializados para América Latina. Actualmente Editor de las revistas Ventas de Seguridad, Gerencia de Edificios y Coordinador académico del Congreso TecnoEdificios.

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