What U.S. Reciprocal Tariffs Mean for EdTech, and What to Do Next

Reciprocal tariffs are import duties imposed by one nation to match or exceed the tariff rates applied by another country on its goods. On January 1, 2025, the U.S. implemented reciprocal tariffs that affected a broad range of tech imports. Some of these increases are targeted at Chinese-made devices and data-center equipment. Given that edtech heavily depends on global supply chains, even a modest tariff increase will substantially raise hardware costs and SaaS hosting fees, thus complicating procurement. This blog will take a look at the new tariff brackets and their immediate consequences for districts and edtech vendors. We’ve also added a few actionable steps to minimize these disruptions.

Why EdTech Feels the Squeeze of Reciprocal Tariffs

The 2025 reciprocal tariffs will increase import duties across a broad range of essential education technologies. For example, student laptops and tablets, previously taxed at 0–2%, will now face duties of 10–25%, directly impacting 1:1 programs and standardized testing deployments.

The table below shows a category-wise breakdown of what the tariffs will mean for edtech devices:

Price shocks won’t stop at physical devices. Higher tariffs on servers, networking equipment, and key components will drive up the cost of SaaS products, AI-powered learning tools, and LMS platforms, creating pressure on both school procurement teams and edtech vendors.

Real-World Fallout for Education

Several school districts are already feeling the impact. In Illinois, districts advanced their device purchases from May to February 2025 in an attempt to get ahead of anticipated price hikes, leaving their grant budgets exhausted four months early.

A local public school district in Green Bay, Wisconsin, shelved its Chromebook refresh plan after its vendor quotes rose by 38% since 2024.

These early examples point to larger consequences: accelerated procurement, funding shortfalls on federal initiatives, and a growing risk of digital inequity for lower-resourced schools.

Steps Schools & EdTech Vendors Can Take

There are many immediate steps school systems and EdTech providers can take to reduce tariff-related disruption:

1. File a Section 301 Tariff Exclusion Request

Hardware vendors and large districts can request tariff exemptions through the U.S. Trade Representative’s (USTR) portal during specific 30-day comment windows. These exemptions can significantly reduce the financial burden of increased tariffs.

2. Utilize Trade Adjustment Assistance

EdTech companies severely impacted by the tariffs can seek financial support via the Trade Adjustment Assistance programs managed by the U.S. Department of Commerce, helping maintain competitive pricing and business stability.

3. Adopt a Refresh-by-Exception Approach

School districts should shift from regular device replacement cycles to replacing devices only when they fail to meet security or performance standards. This approach extends device lifespans to approximately five years and optimizes budget allocations.

4. Leverage Vendor and Partner Support

Schools and EdTech vendors can collaborate to extend existing hardware life through firmware certifications, supplying spare parts like battery and keyboard kits, and negotiating flexible or deferred payment terms.

A mid-2025 policy review by the U.S. government could refine or revise current duty brackets. Stakeholders should closely monitor updates via the Federal Register.

Many manufacturers are already proactively diversifying their final assembly processes, shifting away from China towards locations in Mexico, Vietnam, and India. Limited-run product SKUs from these new locations are anticipated by late 2025. Districts should strategically align their procurement cycles with these emerging supply-chain windows in Q4 2025 to Q1 2026 to take advantage of potentially lower and more stable pricing.

One Next Step

Need help to evaluate your tariff exposure or to prepare a Section 301 tariff exemption? Schedule a 30-minute consultation with our team. We will guide you through cost-effective product strategies and ensure your budgets remain stable ahead of fiscal year 2025.