Alcatel-Lucent to ‘Absorb’ Tariffs’ Cost Increases, Won’t Hike Prices Before 2019

Alcatel-Lucent Enterprise through year-end will “absorb” the “significant” cost increases of tariffs on Chinese imports of networking equipment and components that took effect Sept. 24, ALE said Wednesday. The Trump administration removed imports of Bluetooth headphones, smartwatches and fitness trackers under the 817.62.00 line item but let 10 percent duties stand on networking equipment imported under the classification (see 1809170052). The tariffs will rise to 25 percent after Jan. 1. “Many vendors have chosen to pass the cost through to channel partners and customers by immediately increasing prices,” but ALE “will absorb the current 10 percent increase and give partners the opportunity to place orders before a potential need to adjust pricing in the new year,” it said. Most U.S. customers “locked in 2018 budgets long ago and are already in planning cycles for next year,” said ALE. “We recognize an unexpected price increase could aggravate a budgeting process that is often already complex.” It vowed three months’ notice of any 2019 price increases.