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As a result of the new definitions announced last week, we have a series of unfortunate amendments to the prices and availability that we need to work for American customers. We manufacture most of our products in Taiwan, which we are now facing a new import tariff in the United States. We temporarily absorb part of this cost, and we increase prices on laptops inside the stock and pre -order of a new system by approximately 10 % for American customers. For our lower -price formations, where we cannot afford the definitions, we are currently stopping sales to the United States. We also delay the launch of the pre -frame laptop in the United States. We continue to monitor the changes to the definitions, and we will make additional adjustments if necessary. For customers other than the United States, there is currently no definition effect, and we maintain the same pricing and the availability of our products.
First, I would like to acknowledge that this absorbs for you, for us, and has our mission to reshape consumer electronics. We will go beyond that. This is not the first challenge that we faced, and it will not be the last challenge. We will move through and continue to focus on providing great products and fulfilling this task. We will remain open and transparent all the time and try to bring clarity to a chaotic position wherever we can.
Next, let’s go more details about the specific changes we make. Our framework laptops are made, the main panels, the framework desktop, and a sub -range of our units in Taiwan, which means that they are now affected by an import tariff of 32 % to the United States. These are products that increase prices by 10 % in the United States, and we may need to increase this if the definitions continue. Many of our units are currently manufactured in China, where we face the tariffs between 104 % and 129 % (!!!). On these units, we absorb part of the tariff and increase prices, depending on the category. Our western digital storage is manufactured in Malaysia, which is now facing a 24 % tariff. We have also increased storage rates by up to 10 %, but we recommended to buy it elsewhere to get the DIY version if possible, like directly from the Western Digital site.
These changes enter into force now in the United States for each of the requests within the stock and for new pre -students. We prevent the absorption of customs tariffs along with the price increased as a temporary measure while following the advanced situation on the definitions. At the event, the definitions are removed, we will reset the prior requests that have not yet been fulfilled to their previous prices. If the definitions persist or increase, we will likely need to increase the prices of the United States. For the US Ryzen Ai 300 Series and Framework, we still define how to deal with the effect of customs tariffs. If you need to adjust prices, we will request your assertion on the new price before completing the pre -order. We have also temporarily removed jobs to edit the previous requests of the United States, but you are still able to edit your request upon completion. As always, pre -orders remain fully recovered. We will keep you in constant knowledge of the timing of pre -order in the 12th mobile framework.
For American requests for parts and stereotypes that ship our warehouse in New Jersey, we temporarily stopped demand while implementing the changes that allow us to separate pricing between the elements of laptop composition and the elements in the frame market. When we open the demand again, we will continue to sell the elements already in the inventory in the United States at the original price, while updating the prices for each element when importing a new stock. Canadian requests shipped from our American warehouse will also remain at the original CAD price at the present time, but we may need to make amendments to future prices to the elements that are manufactured in China, which we face some of the effect of customs tariffs.
Now, let’s get into more details on how to make definitions. We keep this non -political and share more on how this operational does. When the goods are imported to the United States, the customs tariff is evaluated based on the country of origin and the HTS code (coordinated tariff table) that the goods are classified as. We charge all our DDP products (paid delivery fees), which means that we pay the customs tariff as clear customs commodities and include the cost within the prices of our products. The customs tariff is calculated against the value of the product when importing, which means our cost as a importer, instead of the final price we charge for the product. The country of origin is defined as the last site in which a “major transformation” occurs. For computers, American customs have specifically determined a major transformation as the site where the main circuit board is assembled.
When the frame starts five years ago, we expected to increase commercial challenges between the United States and China, and we chose to build most of the manufacturing imprint and logistical services in Taiwan. At that time, imports from China to the United States were subject to 7.5-25 % of the 301 customs tariff, with exceptions that included laptops, but not laptops. Since we have collected our main tablets in Taiwan since 2022 (we also assemble the final system and make parts of magnesium and some aluminum parts there), the country of origin for our laptops is Taiwan. Although this has largely protected us from previous rounds of definitions on imports from China, all countries with an infrastructure for making electronics are meaningful to the current round. We are actively looking into the paths to perform the main assembly in the United States, but our current manufacturing partners do not have a necessary infrastructure. We were already moving some units production from China to low -nature areas such as Thailand and Indonesia. The deportation of manufacturing partners or creating a new infrastructure for manufacturing is a theoretical solution in the long run, but it is not something we can implement before the definitions that will enter this week.
This brings us back to price adjustments and availability. Our products are built along a lifetime, and our business as well. We have created excellent supply and logistics teams to be ready for this type of turmoil, and they explore every possible option to return to the US Ordinary. We will share changes and solutions while distributing them, and we will remain transparent all the time. Thanks for continuing to follow up along the trip.