Close the Loop sees positive impact as US duties raise new tech costs.
Close the Loop Limited (CtL) has reported a favourable outlook for refurbished product demand following the introduction of new US tariffs on laptops, printers, and related accessories.
In a recent ASX announcement, the company said the rising cost of new equipment due to import duties is expected to drive more customers toward refurbished and reused products. It added that the likely increase in demand would “strongly outweigh” any additional tariff-related costs.
The company operates refurbishment facilities in Texas, Kentucky, and Mexicali, Mexico. Devices moved across the US–Mexico border for refurbishment remain exempt from tariffs under the T-MEC trade agreement. US-made components and packaging used in Mexico are also exempt. However, components sourced from other countries are now subject to new duties based on country of origin.
The company confirmed that equipment entering Mexico via US ports remains tariff-free if transferred directly, while goods imported directly from countries such as China continue to attract existing Mexican tariffs of 2–15%.
In the US, refurbished products from locally sold OEM goods are unaffected, but higher tariffs now apply to imported components and packaging. The company is reviewing its total cost of goods brought into the US as a result.
Close the Loop said the tariff changes will have a broadly positive impact across its refurbishment operations and the wider IT asset disposition (ITAD) sector.
The news comes as US distributors report pressure on compatible cartridge supply lines, with stock shortages affecting some major resellers. As availability tightens and new product costs rise, refurbished and remanufactured solutions may be well positioned to fill the gap.
That said, anything involving tariffs can change faster than a trade minister on live TV – so today’s advantage could well be tomorrow’s amendment.
