Trump tariffs have forced us into bankruptcy and liquidation, says PC case maker CaseLabs

'Our user community has been very devoted to us and it’s awful to think that we have let any of you down'

Chiara Giordano
Saturday 11 August 2018 14:38 BST
IMF says President Trump's tariff hostilities were 'the greatest near-term threat to global growth'

A high-end PC case maker says it has been “forced into bankruptcy and liquidation” by tariffs introduced by Donald Trump.

CaseLabs, which makes custom towers for computers and has a high-profile following, including prominent YouTubers such as LinusTechTips, announced it would be permanently closing on Saturday.

The company, based in California, said tariffs had raised costs by almost 80 per cent and that “the default of a large account” had added to the issue.

“We are very sad to announce that CaseLabs and its parent company will be closing permanently,” CaseLabs said in a statement. “We have been forced into bankruptcy and liquidation.

“The tariffs have played a major role raising prices by almost 80 per cent (partly due to associated shortages), which cut deeply into our margins.

“The default of a large account added greatly to the problem. It hit us at the worst possible time.”

The manufacturer is likely to be referring to US tariffs placed on Chinese goods.

The dispute between the two countries has escalated since the US imposed 25 per cent duties on $34bn (£31bn) of Chinese goods in early July in response to claims that China steals or pressures foreign companies to hand over technology.

President Trump’s administration last week announced it would push ahead with 25 per cent tariffs on an additional $16bn of Chinese imports starting from 23 August.

PC case maker CaseLabs' headquarters in California, US

China hit back by saying it would impose identical tariffs on $16bn of US goods, including cars, crude oil and scrap metal.

Mr Trump also announced on Friday that he had doubled US tariffs on Turkish steel and aluminium as the value of the Turkish lira plunged.

He said tariffs would be raised to 20 per cent for aluminium and 50 per cent for steel with respect to Turkey.

CaseLabs, which was born out of parent company California Fabrication Company, set up in 1971, said it was doing its best to ship as many orders as possible but admitted it would not be able to ship them all.

“Parts orders should all ship, but we won’t be able to fulfil the full backlog of case orders,” the company said in its statement.

“We are so incredibly sorry this is happening.

“Our user community has been very devoted to us and it’s awful to think that we have let any of you down.”

The Independent has contacted both CaseLabs and the White House for comment.

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