The Impact of Global Tariffs on the IT Supply Chain

The IT supply chain is more interconnected than ever, with businesses relying on a seamless global network to source and procure essential technology. However, in recent years, shifting trade policies and the introduction of tariffs have created major disruptions.

These changes have impacted costs, product availability, and lead times, forcing procurement teams to rethink their strategies.

In this article, we'll explore how tariffs are affecting IT procurement, the challenges they pose, and the steps businesses can take to mitigate risks and optimise their purchasing decisions.

Rising Costs Across the IT Industry

One of the most immediate effects of tariffs is the rising cost of IT products. Many components—such as semiconductors, printed circuit boards, and networking equipment—are subject to import duties, particularly between major markets like the U.S., China, and the EU.

This has resulted in:

  • Higher prices for both individual components and finished goods like laptops, servers, and storage devices.
  • Manufacturers passing costs to buyers, increasing procurement expenses.
  • Budget constraints for IT teams, making it harder to upgrade infrastructure and invest in innovation.

For organisations, these price hikes can lead to difficult decisions—whether to delay purchases, reallocate budgets, or seek alternative suppliers. Without clear price visibility, businesses may end up overpaying or failing to take advantage of cost-saving opportunities.

Shifting Supply Chains & Longer Lead Times

To avoid high tariffs, many IT manufacturers have moved production away from China and toward regions such as Southeast Asia, Mexico, and Eastern Europe. While this helps companies reduce their exposure to tariffs in the long term, it has caused short-term instability in supply chains.

This shift has led to:

  1. Longer lead times: With factories relocating, new logistics processes can result in unexpected delays.
  2. Customs bottlenecks: Shipments often face additional inspections, slowing down delivery.
  3. Uncertain availability: Buyers may find it harder to secure stock, especially for high-demand products.

These disruptions mean that IT procurement teams must be more proactive than ever when planning purchases to avoid stock shortages and delays.

A Reduction in Product Availability & Innovation

Beyond rising costs and shifting supply chains, tariffs are also limiting product choices. Some IT vendors have opted to:

  • Reduce the number of SKUs they sell in affected markets to simplify logistics.
  • Delay product launches in regions with high tariff barriers.
  • Reallocate distribution to lower-cost regions, meaning some products are harder to find in specific markets.

This can create additional challenges for IT teams trying to source the latest technology while keeping costs under control.

Stockpiling & Market Volatility

Uncertainty around tariffs has also led to strategic stockpiling, with businesses buying in bulk before anticipated price hikes. While this might seem like a smart move, it can cause:

  • Short-term price spikes, making it difficult to predict future costs.
  • Fluctuations in availability, as sudden demand increases lead to temporary shortages.
  • Distorted demand forecasting, as businesses adjust purchasing patterns to stay ahead of tariffs.

For procurement professionals, this creates a more unpredictable market, where timing purchases correctly is critical.

Mitigating Risk & Securing IT Procurement

Given these challenges, businesses need to take a more strategic approach to IT procurement. The key is to stay informed, act early, and ensure access to reliable data when making purchasing decisions.

  • Monitor pricing trends to anticipate cost changes.
  • Benchmark supplier prices to avoid overpaying.
  • Plan purchases ahead of time to avoid stock shortages and delays.

This is where KnowledgeBus becomes an essential tool. With its real-time price benchmarking, historical pricing data, and interactive analytics, businesses can make more informed purchasing decisions. Features such as framework pricing in the history view, spend analysis export filters, and two-factor authentication (2FA) help organisations optimise IT spending while maintaining security.

The key takeaway? In a volatile market, waiting too long can cost your business more. By using KnowledgeBus, procurement teams can secure the best pricing, streamline decision-making, and stay ahead of supply chain disruptions.

Schedule a demo today to see how KnowledgeBus can help your organisation navigate IT procurement challenges in 2025.