In a letter to dealers sent on April 15, URC founder and CEO Chang K. Park plainly stated that URC would not be raising prices due to tariffs, despite the considerable costs the company will incur. He also stated his views on the tariff situation, including his belief that the countries involved will work out a solution, though not before experiencing economic pains.
The unedited letter is published below.
Dear Fellow Partners in the Custom Installation Industry,
There have been significant concerns about the impact of tariffs on our industry and I would like to share my perspective on this issue.
As our government tries to address the ever-growing trade deficit, it imposed moderate amounts of tariffs to the products imported into our country and then, the implementation was postponed, except for China. Because of the large trade imbalance, tariffs on goods from China were exempted. They were subsequently increased to an unsustainable tariff rate of 145%.
As you know, most of the consumer electronics we use are produced in China, so these tariffs will significantly affect our industry. I am confident that both sides will eventually reach an agreement and tariffs will be reduced. However, I fear it will not be until both sides have experienced significant economic pains.
We produce our products, both MX remote controls (single room solution products), and Total Control home automation products in Korea. Our government initially set a 26% tariff on imports from Korea and then suspended its implementation for 90 days. I am confident both governments will work this out during the 90-day period.
Regardless of the outcome of tariff negotiations, I want to assure you that I will not increase our price and will absorb the current tariffs.
As you may recall, we raised our price only once in the past 12 years during the great shortage of raw materials following the COVID pandemic. When material costs doubled, even tripled, we were forced to increase our price by 10%.
I remain committed to providing durable and reliable products to our dealers at the current prices regardless of the outcome from the tariffs.
Thank you,
Chang K. Park
Founder and CEO
URC, Inc.
Harrison, NY
For more information, visit urc-automation.com.
