President Donald Trumpâs latest round of tariffs â including a now 125 percent levy on Chinese imports â will hit the smart home industry hard.
Many smart home device makers are already struggling, thanks, in part, to Trumpâs first round of tariffs. Increased competition from budget smart home companies largely based in China has also played a part, and so has slower takeup from homeowners than the industry expected.
The sky-high tariffs on Chinese goods and components present a huge challenge for all smart home manufacturers. Most companies source products from China, and even if they moved manufacturing to other countries, they still may use Chinese-made components. The new, steeper tariffs on countries like Vietnam, where many companies relocated manufacturing, compound their problems.