Article Highlights
U.S. tariffs are expected to cause significant pain for fare-industry vendors, which are likely to pass on at least part of the higher costs to transit agencies. But views are mixed about whether the levies will lead to more manufacturing of fare equipment in the U.S.
Mobility Payments has already heard of examples of component suppliers notifying fare-system vendors that their prices will increase by up to 15% because of the expected tariffs.
• Cubic
• Conduent
• Hitachi Rail
• Vix Technology
• Scheidt & Bachmann
• Kuba
• INIT
• Feig Electronics
• Prodata
• Ingenico
• PAX
• ID-Tech
High tariffs announced by U.S. President Donald Trump last week likely will hike costs for fare-system vendors, which are expected to pass on at least part of the increases to transit agencies, fare industry veterans told Mobility Payments.
Most industry observers say it’s too early to predict the scale of the impact, with many apparently holding out hope that Trump will change his mind and lower the tariffs, as stock markets reel and a number of countries seek to negotiate. Update: Trump abruptly paused most of the tariff hikes for 90 days on Wednesday, except for the levies on China. End update.
But while neither vendors nor agencies are expected to take huge hits from the tariffs, the pain could be significant.
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