Transparency About Future Pricing in the Surveillance Industry and at SCW

There are currently many unknowns still about International trade policy. Like many U.S. companies right now, we’re navigating these changes in real time and working hard to keep up with a rapidly shifting landscape. We want to be transparent about how these changes may affect pricing on security equipment in the weeks ahead so you can plan accordingly. This report written on May 16th, 2025 and is about a developing situation whose details will change over time. This report will become outdated over the coming 45 to 75 days as the situation gains clarity.

On the Import Environment

Significant changes in international trade policies are reshaping the surveillance industry. These shifts are increasing the cost of both imported components and raw materials used in manufacturing—impacting pricing, availability, and production timelines across the board. As a result, businesses relying on security technology are likely to see noticeable effects in the coming months. With ongoing developments in global logistics and trade regulations, there remains significant uncertainty around both future cost increases and shipping reliability.

On China

Although SCW sources most of its cameras from Vietnam, much of the industry is based in China. Despite some media coverage referring to this as a "pause"—a 90-day reprieve lowering rates from 145% to 45–70%—it’s important to clarify that even the reduced Chinese tariff rates remain significantly higher than the pre-Liberation Day levels of 10–20%. In short, this is a temporary softening of what are still historically high import costs.

SCW brackets are currently made in China, but we may be able to move production to Vietnam or the Philippines.

On Other Countries

While recent media reports have focused on a temporary reduction in tariffs on goods from China, there have been no updates as to what will occur in other major manufacturing regions that are slated to have new tariffs in 45 days. This includes Vietnam, Taiwan, and South Korea, which together supply much of the global commercial security camera market. The tariffs on these countries are slated to go into effect in less than 45 days and range from 32–46%.

Most SCW cameras are manufactured in Vietnam.

On Product Made in America

These increases don’t just affect imported products—American-made equipment is also impacted. The highest tariffs apply to raw materials; components like aluminum (used in many mounting solutions) face up to 70% in additional duties, compared to 30% for finished electronics like cameras. This puts upward pressure on the cost of both domestic and international products and prevents actions like manufacturing in the United States from delivering substantial cost savings.

For example, we partner with Motorola for our access control line and expect to see at least a 15% increase in the retail price for readers and door controllers in the coming months.

Motorola makes their access control devices in Canada, Taiwan, and the United States depending on the product model.

On International Shipping

The unpredictable nature of recent trade policy changes is creating a boom-and-bust cycle at major shipping ports. When tariff rates drop temporarily, importers rush to bring in goods before rates rise again—flooding ports, straining logistics infrastructure, and driving up shipping costs due to demand spikes. Conversely, when higher duties are in effect, import volumes drop sharply, leading to underutilized capacity and lower freight prices. This start-and-stop dynamic is making it difficult for suppliers and distributors to plan effectively and is contributing to extreme volatility in shipping rates. For companies like SCW and our partners, these swings complicate forecasting and increase the overall cost and risk of moving goods reliably.

Expectations about Future Prices for the Industry

Unless current policies are reversed, we expect the security industry is likely to face tariff increases that could drive costs up by 15–200%, depending on country of origin, whether the product is consumer or commercial grade (we expect consumer grade products to increase more on average), and their weight to price ratio (with heavier or bulkier items having more risk of increases).

Expectations about Future Prices for SCW Product

At SCW, we are committed to doing everything in our power to find the most cost-effective and sustainable solutions for our customers in light of the evolving trade barriers. We are actively exploring alternative sourcing strategies, including shifting the country of origin for certain products and even evaluating the feasibility of manufacturing our NVRs here in the United States. While these are promising avenues, they require careful analysis and planning, and any decisions will depend on the final details of the new trade regulations. These transitions, if pursued, will take some time to implement, but please know that we are working diligently to position SCW to continue delivering high-quality security solutions at the best possible value.

No one really knows what will happen at the end of either the China (75 days from now) or the global tariff (45 days from now) pause. Perhaps some deal will be negotiated that will create much needed stability.

In the interim, we anticipate that retail pricing will rise by approximately two-thirds of any tariff rates that are implemented. For example, if a 30% duty is applied to products from a particular country, customers can expect an estimated 20% increase in retail pricing. Partner pricing will see a proportionally larger adjustment, as we have less margin flexibility in those tiers.

Price Proposals in an Age of Uncertainty

Going forward, SCW policy on quoted pricing will be to honor pricing for already imported product. We will not be able to honor pricing on backordered products that arrive after the pause, as we do not know what our costs will be for either the tariff or the shipping costs. We are happy to honor quoted pricing from product we imported before the end of the pause. If you would like to proceed with a quote for product that is backordered at the time of purchase, please contact your sales rep for updated pricing and availability. Tariff policy and customer responses to those policies may change delivery timelines and product availability across the industry—including SCW and other providers.

We apologize as some of our products are already backordered. Many clients have been choosing to make large purchases during this reprieve. Right now SCW is moving more than twice as many products as normal, as purchasing now is the optimal strategic move given these shifting dynamics. Although, it is impossible to know what the final tariff percentages will be, it is very likely that they will be more than they are now for at least the next three and a half years.

Planning Ahead

We recommend reviewing your upcoming projects and procurement needs as early as possible, as a way to plan spending before these taxes are implemented.

If you'd like to talk through how this might impact your organization or discuss options for mitigating disruption, our team is here to help.

Sincerely,

Matthew Nederlanden, SCW Founder and CEO

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