By Don Erickson, CEO, Security Industry Association
In April, US global trade policy was turned on its head, sending the global economy on a roller coaster ride of highs and lows.
The dramatically high tariffs announced by the Trump administration have resulted in unnecessary uncertainty for security businesses that create quality jobs and benefits for our national economy at a time in which our country continues to grapple with rising prices and other economic stresses. Who stands to lose the most as a result of these broadly applied tariffs? American consumers.
Earlier this month, after Wall Street and the world anticipated news of hikes in tariffs for several weeks, President Trump invoked his authority under the International Emergency Economic Powers Act of 1977 to impose sweeping ‘reciprocal’ tariffs on countries that have asymmetrical trade relationships with the United States. The administration also imposed 10% ‘baseline’ tariffs on almost all products from nearly every country. One major ramification of these tariffs is the impact on the production, availability and affordability of critical life safety and security products that help keep American citizens and communities safe.
From a business perspective, manufacturers and integrators that provide essential life safety and security products to our neighbours and businesses throughout the country are being put under enormous strain as they struggle to adapt to an uncertain and volatile trading environment. While the security industry has long provided innovative, essential technologies at an affordable cost to consumers, local law enforcement and critical infrastructure operators, increased tariffs will increase the cost of important security and life safety devices.
The newly imposed tariffs increase the cost of key components for manufacturers as they compete globally and will also directly increase the cost of essential security products, placing additional pricing pressure on security integrators, reducing the availability of key products and creating more barriers to accessing the solutions that help protect communities and preserve public safety throughout the United States.
Integrators, who provide best-in-class service to local communities and have customers with purchase agreements and contracts that have pricing baked in, will also be significantly hurt by tariffs, especially when there is no other supply source for critical components and equipment. Most of these companies are small businesses that compete fiercely for business within their regions, and they provide thousands of skilled workers with good paying jobs, selling and installing equipment that helps protect the lives, homes and businesses in their communities. Imposing significant cost increases on products they commonly use could lead to the reduction of middle-class jobs across the United States.
Without question, the impact upon the US security industry from the tariffs will be significant. Today, this sector is an impressive driver of our US economy, contributing over $430 billion in total economic impact and supporting over 2.1 million jobs. The Security Industry Association has urged the administration to provide relief from tariffs for security industry products and formulate a process that allows companies to apply for product-specific exemptions. We have requested exemptions for imported components of security systems, security cameras, locks and other door hardware and equipment.
Security equipment plays an important role in keeping our communities and nation safe. Identity protection and management solutions, access control, camera systems and robotics are essential to implementing strong border security. Consumers need access to alarm and camera systems, as well as fire prevention and alert devices, to safeguard their homes. Local law enforcement officials rely on life safety devices and other security technology products to effectively deal with public safety threats on a variety of fronts, including fighting illicit drug trafficking. Providing tariff relief would protect the ability of consumers, public safety and defence stakeholders to access the critical tools they need to be safe and secure.
The product categories for which SIA has urged exemptions include cards incorporating magnetic stripes, semiconductor media or ‘smart cards’, printed circuits, audio-frequency electric amplifiers, refined copper bars and rods, indicator panels incorporating LCD or LED technology, lead-acid batteries, industrial robots, lithium-ion batteries and a variety of locks and door hardware and equipment. Tariff exemptions for these types of important products are a key way that the administration can protect important business sectors while still achieving their trade policy goals.
US trade policy should drive open markets, competitiveness and innovation and effectively protect intellectual property rights. We strongly advocate for tariff exemptions for essential security products to help accelerate growth and innovation, contribute to a business climate that thrives as the result of sound, clear and predictable trade policy and ensure that critical life safety equipment remains available to consumers at an affordable price, aiding the American economy and the protection of public safety in the United States.
