October 9, 2018<\/p>\n
As you know, on September 24, 2018, the U.S. government applied a 10% tariff onnumerous Chinese imports, including many components and equipment that are eligible for E-rate discounts.\u00a0 The U.S. government also announced it will raise the tariff to 25% on January 1, 2019.\u00a0 \u00a0Not surprisingly, I\u2019ve received numerous inquiries about how E-rate contracts and purchases would be impacted and whether there will be any special E-rate funding provided due to the tariffs.<\/p>\n
First, please know that I will be speaking with FCC officials this week and next about these tariffs and the impact we expect it will have on the cost of E-rate equipment.\u00a0 However, I do not expect the FCC will provide any additional funding or relief due to the tariff-related price increases.<\/p>\n
Second, some manufacturers have already announced pricing increases, and we expect others will be making such announcements in the coming weeks.\u00a0 Some companies are expected to increase prices of certain products, while others are planning to implement an across-the-board price increase on their entire product line.\u00a0 For example, HPE has provided notice that their pricing increase will be 10% across the board, and will begin on November 1, 2019.<\/p>\n
Therefore, I strongly encourage all PA schools and libraries that have E-rate-approved internal connections contracts to make these purchases ASAP before any pricing increases (or further price increases) go into effect.<\/strong><\/p>\n I will keep you updated as I learn more.<\/p>\n — Julie<\/p>\n Julie Tritt Schell<\/p>\n PA E-rate Coordinator
\n717-730-7133 – o
\n717-730-9060 – f
\njtschell@comcast.net<\/a>
\nwww.e-ratepa.org<\/a><\/p>\n\n