Tuesday, April 8th 2025
Framework Halts Sales of Select Laptops in the US Amid Tariff Changes
Framework, the maker of modular laptops, has temporarily halted sales of specific models in the US due to newly imposed tariffs. The move affects the Laptop 13 configurations. The company shared its decision through the official X account: "Due to the new tariffs that came into effect on April 5th, we're temporarily pausing US sales on a few base Framework Laptop 13 systems (Ultra 5 125H and Ryzen 5 7640U). For now, these models will be removed from our US site. We will continue to provide updates as we have them." The tariff adjustment, which raises import duties on goods from Taiwan to 10 percent, directly impacts Framework's cost structure. Originally priced assuming a zero percent tariff rate, the affected devices would now incur losses if sold at current pricing due to the zero-tariff situation in the past. In a detailed follow-up, Framework noted that other consumer electronics firms have undertaken similar recalculations, though few have publicly acknowledged their course of action.
Currently, the Ultra 5 125H model has already been removed from Framework's online store. Other models, such as the Ultra 7 155H and Ultra 7 165H, are for now discounted by up to eight percent, suggesting a temporary price adjustment strategy rather than a complete market withdrawal. Higher end AMD Ryzen 7 7840U SKUs are discounted by 10% and 12%, which is interesting. Framework's situation is just a part of the shift happening across industries triggered by the US administration's recent tariff changes. While Framework's statement leaves the possibility of resumed US sales open, no timeline has been provided. The consequences of the tariff shift are still unfolding across global supply chains.
Source:
Framework
Currently, the Ultra 5 125H model has already been removed from Framework's online store. Other models, such as the Ultra 7 155H and Ultra 7 165H, are for now discounted by up to eight percent, suggesting a temporary price adjustment strategy rather than a complete market withdrawal. Higher end AMD Ryzen 7 7840U SKUs are discounted by 10% and 12%, which is interesting. Framework's situation is just a part of the shift happening across industries triggered by the US administration's recent tariff changes. While Framework's statement leaves the possibility of resumed US sales open, no timeline has been provided. The consequences of the tariff shift are still unfolding across global supply chains.
20 Comments on Framework Halts Sales of Select Laptops in the US Amid Tariff Changes
PC hardware in this segment of the notebook market has a very short shelf life. In a few months something else from someone else will show up that's better. Removing it from sale "temporarily" is nearly the same as outright cancelling it. They are basically slamming window of sales opportunity shut.
Trump's policies are insanely volatile which means that a company could import something with a 50% price hike but if Trump has one of his episodes and then decides to cancel the tariff that company won't get reimbursed that cost - they'll either have to still try and pass the cost on to the consumer (which won't go well) or eat that cost (which is also awful as the margins AFAIK aren't that good to cover for such a massive difference)
Companies will pass on the tariffs to consumers because they won't take the hit to their profits. Remember that consumers have been paying for tariff-inflated prices on all sorts of products FOR DECADES because it's not a line item on a receipt. It's built into the retail price. Merchants don't benefit from tariffs, that money goes to the government.
In the end, a tariff is basically a federal sales tax without showing up on a store receipt.
Remember that tariffs will affect most of Framework's competitors since most PC hardware rolls off of manufacturing lines in southeast Asia. It's not like the current administration singled out Framework, Apple, HP, Dell, Lenovo, whoever.
At this point in time, Framework is simply reacting on the tariffs that are in the news.
Anyhow this is Framework's decision. Before they were making X dollars in revenue from these SKUs with Y profit. Now they are making zero dollars of revenue with zero profit from these SKUs.
That's why their decision not to increase prices is quite peculiar. Accumulating mindshare and building marketshare in the PC industry is not easy. Exiting the market is not something easily reversible after a few months have passed.
Do you think Audi, Jaguar, and many other companies pausing all shipments to the US for an indeterminate time are also "cancelling" their products?
And those sales pauses are more to protect luxury brand images. They are all owned by larger conglomerates that include mass market vehicles that haven't stopped shipping. Comparing the two industries is very tricky.
Comparing Framework to Lenovo, HP, Dell or even Apple would be more appropriate for this discussion.
It's not like anyone considering a $80,000 is going to rush out to buy it because it might go up to $100,000. For a $800 smartphone or PC, yeah. That's why Apple apparently flew five planeloads of iPhones from China and India shortly before tariffs kicked in. Moreover Audi and Jaguar's corporate parents don't have a way to send a freighter loaded with vehicles across oceans overnight.
Also, just because the scale of price is higher, the actual sell through rate and profit margins once scaled aren't that different between the auto industry and consumer tech industry. VW is another company that has stopped all shipments and they aren't a luxury brand but instead a mass market brand that you claim "hasn't stopped shipping", except they have
But comparing the luxury auto market with a commodity like a PC isn't a good comparison. Most likely Framework is drop shipping SKUs straight from China (or someplace in Asia). And they likely don't have a distribution system to transport all of their Asian-based inventory to US shores overnight. Apple, Dell, HP have substantial distribution systems in many parts of the globe.
It's also worth pointing out that the vehicles you see on a dealer lot are actually owned by the dealership. They aren't on the books for the manufacturer. In the same way, a PC in a retail store is part of the store's inventory (purchased at wholesale).
Companies like Framework are basically selling direct-to-consumer and not going through wholesale channels. Apple does both: DTC and channel sales.
My guess is that Framework will sell through their inventory of the SKUs suspended from US distribution to other markets elsewhere on this planet. In the not too distant future, they will probably have some newer SKUs based on newer processors that might make a return to the US market, almost inevitably with a higher price. It's up to them to determine whether or not it's worth it. Profits in this segment of the PC market are extremely meager. The only ones really making any profit are those selling oodles of >$1000 PCs.
they should still sell them but list the pre tariff price and post tariff price and let people decide if they still want to buy it.
Remember that tariffs have already existed for decades (at lesser levels and for different products). They are built into the retail price. If a government jacks up wine tariffs, no wine shop is going to list the pre-tariff and post-tariff prices on the bottle. In the same way, if the ATF changes alcohol taxes, no distiller is going to list that on their spirits. And no jeans manufacturer is going to list pre-tariff and post-tariff prices on cotton imports.
And not just tariffs. If electricity goes up, the price of paper cups goes up, the price of milk goes up, should the neighborhood coffee shop list all of that on the receipt? No, it would end up looking like your cellular or cable bill.
What if auto manufacturers did the same? And let's say vehicle X from Manufacturer A has a combined tariff of 4.25% where vehicle Y from Manufacturer B has a combined tariff of 4.3%? Different because the components are sourced from different countries. Does that really help?
This is utterly asinine. It will just discourage people from buying and increase ill will at least here in America. Maybe it'll encourage Canadians to spend more, I have no idea what goes through the heads of our northern neighbors.
Or just keep using the one that you already have.
But setting aside the jokes let's be honest. The US economy is driven by consumer spending. Telling people not to spend money won't Make America Great Again.
Does anyone believe that Framework is racking in so much dough that they have the luxury of abandoning these SKUs? I don't know about that.
My guess is that there's some other influencing factor that prompted this decision. We will likely never know why but it certainly appears like dark clouds forming on Framework's horizon.
Note that Framework could have just increased the US prices. If no one bought at the increased prices, it's not like they would have lost any money. They could simply sell their inventory to other markets. But in this scenario they have guaranteed that their gross revenue will be zero dollars for the US market going forward for the affected SKUs.
What is not quantifiable is the negative publicity in showing up in tech news headlines by this action. For sure someone is going to see TPU's headline and not see the word "select". They are just going to remember it as "Framework Halts Sales of Select Laptops in the US Amid Tariff Changes." That's wrong and it wouldn't be the first time someone has misinterpreted news. Hell, I wouldn't be surprised if someone is spouting those falsehoods on Tik Tok, Reddit, Discord, whatever right now. Maybe it's some kid with poor reading comprehension. Maybe it's a competitor deviously fomenting FUD.
Companies really need to be careful what and how they announce things in 2025 because social media will unapologetically distort, misrepresent and sometimes outright get things dead wrong whether it be accidental or deliberate.
Well, we all knew this would not be the first and last sales suspension.
UPDATE: Now Razer has stopped selling some of its notebooks in the USA:
wccftech.com/razer-disables-purchase-option-for-blade-16-and-blade-18-gaming-laptops-in-the-us-amid-looming-tariffs/
I am sure this will not be the last episode. Not sure if this is worth reporting on anymore.
At this point I will bow out of further discussion on this topic and leave it to others to anoint us with their wisdom and witty insights.
:p:D:lovetpu:
It just might be that this company actually knows what's best for itself.
-gasp-
A healthy mix of principles, long term planning problems and the accompanying risk, plus the uncertainty that the next administration will just reverse everything again is quite simply A Death Sentence for companies. Even if there is a profit scenario, it'll come with an unmanageable risk component, so its a complete no go.
Trust. That's what this is all about. And Trump has now definitively proven to be the least trustworthy partner to deal with. There's simply no upside to doing business with this idiot.