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Tariffs: What SLED IT Departments Need to Know and Be Thinking About

Updated: Apr 9


Close-up of a government IT administrator reviewing budget reports with a laptop and financial documents showing tariff impact.

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If you run IT for a public agency in New York, New Jersey, or Eastern Pennsylvania — whether you're overseeing city networks, school district infrastructure, or state-level systems — you know that technology budgeting is already a balancing act. And now, with the return of aggressive tariffs, that act just got trickier.


We read the 21-page white paper, "Tariffs: Understanding the Impact" released earlier this month by IT Brew and pulled the tidbits SLED IT leaders need to know about tariffs. We're hoping this can help you and your team understand the real impact of these tariffs on SLED (State, Local, Education) agencies in our region.


Why This Matters in the Tri-State SLED Market

Unlike commercial enterprises, SLED agencies don’t just “adjust prices” when costs go up — SLED IT departments serve communities with finite resources. Delays or degradation in service have a real human impact: slower emergency response times, weaker cybersecurity defenses, or classrooms without the technology they need.


For New York, New Jersey, and Eastern Pennsylvania public sector IT leaders, preparing now could make the difference between being caught flat-footed and staying resilient in the face of change.


Tariffs: You Need to Know Who’s Really Paying

It’s tempting to think that tariffs are just a hassle for manufacturers or importers — but for IT leaders like you, they show up where it hurts most: on your purchase orders.


Experts like Erica York from the Tax Foundation remind us that while the importer writes the check, the end-users often bear the true financial burden. Those higher equipment prices ripple straight down to public agencies already working under tight, taxpayer-funded budgets.


In the SLED world, we don’t have the "luxury" of just passing along extra costs to customers like private businesses might. Instead, you may find yourself being made to:


  • Delay much-needed upgrades

  • Scale back critical infrastructure projects

  • Reduce services or push projects into future budget cycles


This isn’t hypothetical. Studies of past tariff rounds found that U.S. consumers and businesses — including public sector IT department — absorbed the majority of the costs.


The Ripple Effect is Bigger Than You Think

Tariffs are more than line-item increases on an invoice. They trigger ripple effects that impact your entire IT ecosystem:


  • Reduced Cash Flow Agencies may find themselves with less flexibility for innovation, hiring, or even meeting new state or federal mandates.

  • ERP & Procurement Challenges Contract changes, supplier shifts, and new compliance requirements often mean your ERP systems need retooling.


  • Delayed Projects From modernization plans to cybersecurity upgrades, projects could slow down due to uncertainty and budget constraints.


In short, tariffs affect much more than just hardware prices. They could influence every IT decision you make over the next fiscal year.


Risks and Realities for SLED IT

The tech industry — especially enterprise IT — is taking a direct hit. The latest rounds of tariffs target semiconductors, servers, network hardware, and components essential for public sector infrastructure.


For New Jersey, New York, and Eastern PA agencies managing everything from emergency services networks to school district Wi-Fi, the implications are real:


  • Data center costs are expected to rise as servers, chips, and rare earth materials become more expensive.

  • Cloud providers may pass down infrastructure cost hikes.

  • AI initiatives, cybersecurity projects, and smart city investments could face budget strains just when momentum is only just starting to build.


According to analysts from PitchBook, even modest tariffs on tech components could slow AI infrastructure spending — a concern for SLED leaders trying to modernize and secure their systems.


Which IT Costs Could Spike

The Consumer Technology Association (CTA) has done the math. If proposed tariffs take full effect, here’s what you and your IT department could be looking at:


  • Laptops and tablets: +57%

  • Monitors: +50%

  • Servers and network equipment: double-digit increases across the board

  • Consumer devices (that students, employees, and constituents rely on daily): significant price jumps


CTA also warns that there simply isn’t enough domestic manufacturing capacity to meet demand — especially for tech like switches, routers, and security appliances. In other words, paying more won’t even guarantee availability.


For SLED agencies, these aren’t just budget annoyances. Rather, these could:


  • Delay cybersecurity upgrades

  • Disrupt student device distribution

  • Force agencies to operate longer on aging, vulnerable infrastructure


 

Ready to budget for tariffs?

Reach out to us today.


 


Could Tariffs Mean Innovation?

Some experts see the current tariff situation as a potential push for innovation in IT strategy.


Deborah Weinswig from Coresight Research believes organizations that have been slow to rethink supply chains or IT modernization will now be forced to act. This could drive:


  • Smarter procurement strategies

  • Creative sourcing of equipment

  • Renewed attention to infrastructure optimization

  • Increased collaboration among regional SLED entities


In our corner of the country — where agencies often rely on long-standing contracts and legacy systems — this might be the nudge needed to modernize more efficiently, even if it feels painful in the short term.


Of course, innovation isn’t automatic. It will take foresight, collaboration, and frankly, some tough calls. But you’re not alone in this. Regional peers are grappling with the same challenges — and working together might be part of the solution.


What Should SLED IT Leaders Be Doing Now?

  1. Conduct a Rapid Tariff Impact Assessment

    Identify where your IT infrastructure is most vulnerable to tariff-related price increases.

  2. Engage Suppliers & Integrators

    Ask directly about their tariff mitigation plans. Can they stockpile equipment? Will they pass on increases?

  3. Scenario Plan

    Be ready for multiple outcomes. What happens if prices rise 10%? 25%? What projects could be impacted?

  4. Collaborate Regionally.

    Consider working with neighboring municipalities, school districts, or state agencies for joint purchasing or shared infrastructure strategies.

  5. Stay Informed.

    Tariff news changes weekly — sometimes daily. Make sure you’re getting accurate, actionable insights.



 

Ready to budget for tariffs?

Reach out to us today.


 



Frequently Asked Questions (FAQs) About

Tariffs & SLED IT Budgets

Q: Will every IT purchase be affected by tariffs?

A: Not every item, but key categories like servers, networking equipment, laptops, and semiconductors are directly impacted. Many of these are foundational to public sector IT infrastructure.

Q: Can SLED agencies negotiate around tariffs?

Q: How can I prepare my IT budget for potential price hikes?

Q: Could this actually push us to innovate?


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