Who Is Raising Camera Prices Due To Tariffs?

LTS, Hikvision's largest US OEM, has been telling many industry people since Friday to expect 10 - 25% price increases, blaming tariffs.

And Bollide, another China OEM, sent an email yesterday saying they may / will increase prices:

What are you seeing or hearing?


When are they going to dub this trade war a name? "The Great US China Trade War" Done.

Some of our USA suppliers are already raising their prices on their current stock in anticipation that their customers may try to wipe out their stock in order to beat the tariffs.

Other suppliers say they have months worth of inventory to ride out the storm and wont be raising their prices.

Luckily we just received 2 large loads in from China right before the Tariffs. Our strategy is to only raise prices when prices are raised on us. We will be sending out an email this week of our strategy.

im surprised their isnt much more talk about this here among the buyers and sellers of Chinese goods.

Im curious if the tariffs will go back to normal soon, even before the 10%. Or do you think 10% is here to stay?

I'm guessing if sales don't take any sort of a dive, prices will probably stay and not go lower if/when the tariffs are gone. You can just look elsewhere for the proof.

Everything went up when gas prices skyrocketed, but for quite awhile gas prices went real low again. Prices didn't really follow.

I researched what products and items are CURRENTLY included in this tariff -AND DOES NOT INCLUDE CCTV CAMERAS.

Manufacturers and distributors seem like they are looking to capitalize on the situation

Please share your research, #1.

Our research is here - US Tariffs Announced For China Video Surveillance, net/net some items are certainly included, how the manufacturers are using those HTS codes (or other non-tariffed ones) are unclear.

8525.80 is the code.

And I just learned something that I hope i am wrong on. I originally though the tariff rate was going from 10% to 25%. But after I checked this, i think it has gone from 10% PLUS another 25% = 35%
Can someone confirm. If so, WOW!! Game Changer.

https://hts.usitc.gov/?query=8525.80.3010

Sean, thanks.

For others, here is a screencap for context saying 35%:

Not sure why it says 35%. Anyone else with info on that/

just confirmed with my freight forwarder that its only 25% as originally thought. The 35% is from countries like Cuba and North Korea apparently.

Please share what HS code you assume manufacturers and distributors are using for CCTV cameras

IP Cameras are definitely included. NVRs are/were not included in the 10% tariff.

People are lying and saying their cameras are still image snap shot cameras, like wild-life cameras with SD Cards/TF Slots. This is fraud. Our own manufacturers tried to convince us to do this. It may be no big deal in China, but as patriotic Americans (our owners and maybe 1/3 of staff are military Veterans) we cannot abide.

What percentage of the parts that go into the build of product we use are from China?

I knew I should have got in on the FLIR/Dahua/ADI closeout :)

Dahua claimed today that they have already moved USA production to Mexico.

I don't believe many companies will increase prices.

Dahua claimed today that they have already moved USA production to Mexico.

good, until the southern border is closed...

Depends on the brand of products you use. Dahua, Hik, UNV, TVT, Raysharp etc... 100% Chinese historically.

Mobotix, Axis, others like that? I've no experience, some chips are certainly Chinese and maybe some other parts are from elsewhere (in Asia). There are some Korean and Taiwanese chipsets coming out now that are more competitive, it is a direct response to the tariffs. The landscape is undergoing great changes right now, we're all in transition. Things are kind of up in the air it seems...

Dahua claimed today that they have already moved USA production to Mexico.

I don't believe many companies will increase prices.

Would this apply to products OEMed by other companies?

Double Radius is making it very clear everything Ubiquiti is going up...

Yes, this applies to anything made in China, whether the company is based in the PRC or the USA, etc.

I placed an inquiry into Dahua management to confirm or deny the Mexico production statement.

Sorry I meant is Dahua moving all production (For US based products) to Mexico, including what they sell to OEMS. It seems like they would, due to economies of scale, etc

How does the tariff affect products made in Mexico, but owned by a Chinese company? I guess it doesn't?

I am still not sure if Dahua is moving any production to Mexico. I emailed Dahua on Wednesday asking for clarity and again today.

Generally, tariffs are applied to where goods are made, not where the companies are based, i.e., if tariffs are applied to cellphones they would hit Apple phones made in China, etc.

Also, even if Dahua or Hikvision moved production to other countries, there is still the question of which models they would make outside of China. Presumably, the most popular fixed focal cameras but it would still be interesting to see how many niche or complex models they would move (think multi-imagers, PTZs, covert cameras, etc.).

Just wondering because our primary Dahua OEM has not said a word about it... I wonder if they are going to just surprise me one day.

This is why we have started looking at and implementing some other cameras and VMS.....

Did you ask them explicitly about the impact of tariffs? If so, what did they say? I'd be curious to hear their specific response (i.e., plenty of inventory in stock, they think the tariffs will be repealed soon, they figured out how to avoid tariffs, etc.)

Really trying to be helpful and offer good advice, here.

From what I understand from my Chinese contacts, there's a standing "No Comment" strategy for IPVM from the Chinese manufacturers.

This is the real risk with manufacturers feeling like this site is "out to get them." You can't have both access journalism and gotcha journalism. Eventually, the people who feel like they aren't getting a fair shake, stop granting access.

This could turn into a 100 post pissing match, but I do not think IPVM is out to get them. They simply report the facts. Hell they still test their products.

Regardless, the manufacturers and distribution have known this day may come, and should have a plan for communicating their plans. We have not seen a word from Dahua via email.

With the 25% increase, that puts the Dahua product that much closer to other solutions that don't carry the same baggage. If the Chinese don't address this and make a statement, I am sure plenty of resellers/integrators will start to look at other solutions, that don't carry the same baggage Hikua does. I know we have.

From what I understand from my Chinese contacts, there's a standing "No Comment" strategy for IPVM from the Chinese manufacturers.

Dahua management has emailed us multiple times this week, including this morning. Hikvision spoke with us repeatedly for our recent DeepInView test.

Try to understand when it comes to official public declarations, this requires more time and vetting internally than gossiping with a small OEM customer like yourself.

It saddens me greatly to see this site devolve into personal vendettas.

Matthew, spare me the victim card. You made a specific assertion about IPVM which is simply factually false. You wrapped it up in a sanctimonious "Really trying to be helpful and offer good advice" nonsense.

What's personal here is that you are hurt that IPVM criticized your company as not being a 'real manufacturer'. But IPVM criticizes such companies consistently.

If you were as clever as you think you are, you would not have lead with a specific assertion that I could easily deny / disprove. You're welcome to say what you want on IPVM but I am free to respond as well.

Thanks for making my point for me!

May 6, 2019 IPVM:

In response to IPVM's investigation, Dahua and Hikvision tell IPVM that they have not sold anything to the GSA and are sending cease and desist letters to 3rd party companies selling their products on the GSA.

May 19, 2019 Matthew Nederlanden:

From what I understand from my Chinese contacts, there's a standing "No Comment" strategy for IPVM from the Chinese manufacturers.

Net/net, you think you are an insider but you are not. You can try to save face by saying it's personal, that's fine.

1. Saying that "there's a standing 'No Comment' strategy for IPVM from the Chinese manufacturers" is not disproven by an exception or two. I am saying that this is the norm, not that exceptions don't exist. Just read: https://ipvm.com/reports/face-iscw-19, does it sound like you still have access when a manufacturer says "we really don't want you guys to report on us" ?


2. This is no different than what SCW is doing here, now, and if you ask me, this is why why you are attacking me, personally. I show how biased this forum has become.

Here's what happened for everyone else to know: Your reporter called to interview me about two things: (1) Looking for dirt on someone else in the industry and (2) SCW's growth, claiming we were the largest client of our supplier (which I doubt, honestly). I politely declined to go on record in either accord, stating something like "I don't want to create drama or enemies, I would rather be friendly and polite."

I even talked, off the record, about how it is a big enough market for everyone to be successful - even people who have harmed SCW in the past.

Then you started throwing insults out. You're only attacking me because I won't play your game.

3. Saying that because we have emailed or that I have commented here or there, does not take disprove that I am not willing to talk to IPVM in any official capacity.


Your reporter called to interview me about two things: (1) Looking for dirt on someone else in the industry

We speak with lots of people looking for input and information. I am not sure who, what or when someone from IPVM spoke with you but it is a normal part of the reporting process, whether it is for IPVM or WSJ or Bloomberg, etc.

You can not respond, you can respond negatively, you can post comments attacking us on IPVM, that's fine.

I am saying that this is the norm, not that exceptions don't exist. Just read: https://ipvm.com/reports/face-iscw-19

That report has profiles of 8 PRC manufacturers, 6 of which talked to us, ergo it reinforces that it is the norm, not the exception. Why would you pick something so obviously easy for me to refute and make you look bad?

More than one instance of this is enough to cause concern.

Gen IV Technology has not added even the 10% Tariff cost to our products, we've been eating this cost in an effort to transition through this time smoothly. We intended to do so recently, but back pedaled that decision to wait out the politics just a little longer.

We do intend to raise prices when WE actually have to pay for the 25% tariff. We will not raise pricing on products that are already in America, as we have not paid extra to import those products. We've seen many manufacturers and importers lying, defrauding, illegally using erroneous Tariff codes as to avoid even the pre-Trump tariffs! G4 refuses to engage in this behavior.

It's tough competing against liars, however, we are vigilant in the maintenance of our integrity (The only company to issue a stop-ship on Dahua until a security fix for Mirai was provided!). The only time that we'll raise prices is when we absolutely have to.

We attempt to stick to a sustainable profit margin formula, and whatever our landed cost is the formula is applied and that is the price. We do not gouge. The only deviation in this formula is when discount bargain shops force our hand, and that's towards the down-side not the up. Matching prices isn't fun, but certain elements-in-America force the issue.

So, short version; seems like the next shipment we get the prices will be raised on THAT inventory, not current. I'm not sure how Trump thinks the Chinese are going to pay for this tariff, because right now it feels like I am paying for this tariff. It's going to feel like the consumer is paying for the tariff the day we increase our prices.

Side note; if this is too much in the realm of self-promo, John, I understand if you remove the post and/or company name.

Here's someone not raising prices. Hikvision (don't call it a sanction sale) at ADI, now up to 20%:

This is a risk-of-sanction or risk-of-entity-list-restrictions sale. It's ok to call it that.

Ask yourself, what will ADI, Tri-Ed, and everyone else do with their Hikvision / Dahua inventory if the sanctions or the entity-list happen?

John is painting a picture that once the sanctions and tariffs are in place, integrators will be able to return to the glory days of prosperity. He's claiming that the race to the bottom is over, but IPVM has been influential in making sure it isn't.

If Hikvision and Dahua are added to the entity list, tons of integrators are going to lose major revenue, perhaps their jobs - just look at Huawei prices. How easy will it be to compete with something 90% off?

John is promising you salvation but delivering you a situation where everyone still invested in Hikua inventory will dump it at or below costs, just to be rid of it.

He's promising financial rewards, but many of you will reap financial pain.

NOTICE: This comment has been moved to its own discussion: John Is Promising You Salvation But Delivering You A Situation Where Everyone Still Invested In Hikua Inventory Will Dump It At Or Below Costs, Just To Be Rid Of It.

Unsubscribing, this has gone way off track...

"John is painting a picture that once the sanctions and tariffs are in place, integrators will be able to return to the glory days of prosperity. He's claiming that the race to the bottom is over, but IPVM has been influential in making sure it isn't."

for the thought leader entrepreneur that you imagine yourself to be, it is interesting to me that you seem to only be able to see things through your own biased perspective.

The part of your comment above that I bolded is an example... cuz I don't think that most readers of IPVM would agree with this view. Your 'race to the bottom is over' IPVM link contains this paragraph:

"China Not 'Over'

To be clear, this does not mean that the Chinese manufacturers are 'over' or 'done'.

What is over is the belief, held by many, both friends and foes of the Chinese manufacturers, that Dahua and Hikvision would quickly dominate the market.

This means that the Chinese manufacturers need to figure out a new strategy and different tactics to deal with these conditions."

and FTR: I applaud your focus on customer service as a differentiator/growth vehicle... but please note that others (clearly not all) have used this same vehicle before - and have been around doing it a lot longer than you have.

While I do not know Zachary (who posted above) personally, Gen IV has been around for more than a decade doing what you do... it was one of the reasons the integrator company I used to work for back in 2006 used their stuff.

Got this from alarm.com on 5/16/2019:

Valued Partner,

As you have undoubtedly seen in the press, the U.S.-China trade dispute is escalating. We have received notice that the following camera models, which are manufactured by suppliers in China, are now subject to a significant new tariff, effective May 10th, 2019. Based on President Trump’s statements, we anticipate that virtually all components and products coming from China will have associated tariffs by mid-summer if the dispute is not resolved.

After considering the issue carefully, we have decided that at least initially, we will not pass on all of the new tariff costs on these models to your business and will instead absorb a meaningful portion of these unanticipated expenses ourselves. But, we will have to pass on some of the unexpected expenses. The portion of the tariff costs that we are passing through amounts to $8.00 on the 722 cameras and $10.00 on the 726, 736, 826, and 836 cameras. You can choose whether to pass through some or all of these tariff expenses to your customers.

We are hopeful that the tariffs placed on these products are not permanent. If the tariff costs are subsequently eliminated, then we will reduce the costs of the affected products by the amount of this cost increase, as appropriate. We are monitoring the trade dynamics closely and working to develop longer term alternatives in case the dispute is not resolved favorably.

We apologize for the disruption this change may cause in your business and appreciate your continued partnership.