The wave of tariffs announced as early as January includes a 10 percent baseline on most imports, with increases for certain countries, according to the nonprofit Tax Foundation. For example, the tariff on Chinese-origin products was raised to 125 percent on April 9. However, in response to industry concerns, the Trump administration exempted electronics such as a smartphones and computers from these tariffs.
Despite these exemptions, experts say the overall tariff environment has led to increased costs for educational institutions, especially as industry-based tariffs on electronic components like semiconductors, steel and aluminum were promised. Additionally, schools are navigating tariffs alongside broader policy shifts, including changes to student loans and Pell Grants, Ben Cecil of the policy think tank Third Way said.
IMMEDIATE IMPACT
At the procurement level, some schools increased technology orders to get ahead of tariff impacts. Digital Education Awards Magazine reported in May that fourth-quarter orders for classroom laptops, tablets and Chromebooks were accelerating as schools attempted to lock in prices before they inflate. In an email to Government Technology, Quimby Kaizer, principal leader of the national education sector for the professional services firm KPMG US, said cloud-based software and locally produced content are less affected, although hosting costs for software-as-a-service platforms have risen slightly.
Still, hardware prices rose sharply, with some laptops and tablets forecasted to see increases of up to 46 percent, according to the Consumer Technology Association.
Higher hardware costs have also intensified existing financial pressures on families, according to Cecil. A KPMG survey in July also found that 74 percent of back-to-school shoppers attributed increased spending to rising prices, with 52 percent planning to buy less overall due to tariffs.
“If you’re paying more for whatever it is that your family is needing to buy, you know, you need to buy a new washing machine, a new refrigerator, a new car […] it takes a little bit of money out of the pot that you’re going to use to be able to pay to go to college,” Cecil said. “Tariffs might seem a little bit tangential to higher ed, but when the average American family is going to be paying more each month for the basic services and goods that they need, it means that college inherently becomes more expensive.”
The tariff-induced challenges extend beyond hardware costs. As global supply chains face price inflation, universities incur higher expenses for general campus operations, from janitorial supplies to fleet vehicles and maintenance equipment, Cecil said. Tariffs can also delay planned infrastructure upgrades and refresh cycles, especially for hardware-intensive labs and classroom technology. Universities with large research and development programs face prohibitive costs for imported lab equipment, for example.
The impact on international students adds another layer of financial strain. According to research from the University of California, San Diego, tariffs on Chinese imports have contributed to a 25 percent drop on Chinese student enrollment, costing U.S. universities more than $1 billion annually in tuition revenue during the first Trump administration. International student tuition has historically helped offset domestic budget gaps, meaning tariffs not only impact physical technology costs but also the flow of tuition revenue.
Cecil said simply raising tuition to offset costs is generally not an option due to public trust concerns and governance constraints, meaning universities must find operational efficiencies or other solutions. For example, according to Kaizer, some schools are shifting away from annual procurement cycles toward multiyear agreements to keep costs more predictable. Kaizer said schools are also building teams and processes specifically tasked with managing tariffs and other policy uncertainties more systematically.
Princeton University’s procurement office, for example, advises examining domestic sources, the overall goal of the tariffs, or those in countries not subject to high tariff rates. The Princeton office also suggested negotiating with suppliers to share costs.
ED-TECH VENDOR RESPONSE
Some ed-tech providers are responding to uncertainty by changing their prices and supply chains. According to a KPMG survey on tariff responses this month, 44 percent of surveyed U.S. businesses had already adjusted product prices, with many more considering it. At the customer level, some vendors have offered deferred payment options or extended support for existing devices, Kaizer wrote.
Supply-chain resilience has also become a priority. Kaizer said in an email that while only 10 percent of companies have implemented major sourcing changes, 63 percent are evaluating nearshoring, regional diversification and manufacturing partnerships that decrease reliance on a single country, which aligns with the ultimate goal of the tariffs to bring business back to the U.S.
“What’s encouraging is the innovation we’re seeing: creative financing models, supply chain diversification and new approaches to procurement planning,” Kaizer wrote. “The organizations treating this as an opportunity to build operational resilience — rather than a temporary challenge to wait out — are positioning themselves for long-term success regardless of how the policy environment evolves.”
To manage the dual pressures of rising costs and shifting consumer demand, she said, companies are increasingly relying on scenario planning, automation and data analytics. KPMG found that over half of tech companies postponed major capital investments by up to a year due to tariff uncertainty.
OPPORTUNITIES AMID UNCERTAINTY
Despite the challenges, experts see room for strategic moves. Ed-tech firms are using scenario planning, automation and data analytics to anticipate cost fluctuations and supply-chain disruptions, Kaizer wrote. She said institutions are focusing on building vendor relationships to improve transparency and alignment on multiyear road maps.
Cecil agreed.
“Institutions’ real challenge right now is to figure out what is the new equilibrium that can help them move through the uncertainty and the volatility of the next few years,” he said. “For each institution, I think that’s going to look different.”
