Will Harbor Freight Tools Get More Expensive With President Trump's Tariffs?

Ever since President Donald Trump announced the "Liberation Day" tariffs, and China responded with its own hefty reciprocal import duties, analysts have been trying to gauge the true impact of these shifts, with one shared belief — your rides are about to get expensive. However, not only cars are being affected, but also tech, like the Nintendo Switch 2's preorders, as well as automotive tools, parts, and power gear, which will hurt brands such as Harbor Freight.

Just how much? Well, think in the realm of double the regular asking price if Harbor Freight decides to pass the extra tariff duties on to the customers. The California-based company has made a name for itself selling low-cost tools and equipment for nearly half a decade. The secret to the company's success in the low-price tools market? Outsourcing their manufacturing duties to partners in China but taking a comparatively lower share of the profit margins to ensure that the final price of their gear is on the lower side.

"We work directly with the factories — the same factories that produce the tools for many of our competitors — and bypass the middleman so we don't have to pay them an additional markup. We then pass those savings on to our customers in the form of lower prices," says Harbor Freight. With massive two-way tariffs now in place — 54% on China and 34% on the U.S. between the two countries — it seems Harbor Freight will have no other alternative but to raise the sticker price of its products sourced from China.

With China facing a higher tariff, it fired back with its own previously mentioned 34% tariff countermeasure on U.S. imports. According to President Trump, retaliatory trade measures aren't acceptable, and if China doesn't back off, it will be slapped with essentially double the current tariff rates. That doesn't bode well for Harbor Freight, which is heavily reliant on cheap manufacturing in China to sell low-cost hardware in the U.S. 

"...if China does not withdraw its 34% increase above their already long-term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th," President Trump wrote in a post on Truth Social. "Additionally, all talks with China concerning their requested meetings with us will be terminated! Negotiations with other countries, which have also requested meetings, will begin taking place immediately."  

President Trump has also ended the de minimis clause for individual shipments from China. That means if companies like Harbor Freight intend to import tools directly from a low-cost e-commerce marketplace like AliBaba, they will face an import duty worth up to $50 or 30% of the shipment's value upon entry into the U.S. SlashGear has reached out to Harbor Freight for a statement on how it aims to deal with the tariff situation, and will update when we hear from the company.