Buffalo electronics manufacturer closes, laying off 77 employees

BUFFALO, N.Y. (WIVB) - A Buffalo electronics manufacturer announced Thursday that it will discontinue operations effective immediately.

Bak USA, located on Michigan Avenue, currently employs 77 people.

Bak USA chairman J.P. Bak said in a statement Thursday that the due to new federal tariffs imposed on products from China, economic pressures on the young company became too great.

"“It is with great sadness that I announce today that Bak USA will close its doors. My family started this business nearly four years ago with a bold vision: to empower American students and workers by producing computers in the U.S. Through the innovation and hard work of our talented team, we achieved more than we dreamed.

"While we are beyond proud of Bak USA’s many successes, the business did not reach the point of profitability necessary to sustain itself. The additional, unanticipated expenses associated with the tariffs imposed by the White House were a deciding factor in our ultimate decision to close."

Employees were notified on Thursday.

Buffalo mayor Byron Brown said that he was contacted by Bak about the closing on Thursday.

"Tariffs imposed by the Trump administration on products from China and the components which they get from China have essentially put Bak USA out of business," Brown said. "This is a direct consequence to federal policy".

Erie County Executive Mark Poloncarz weighed in, saying:

“I am saddened to learn of the closure of Bak USA. I had spoken to JP Bak multiple times recently as he fought to keep his company open, including just this morning. Unfortunately the recent imposition of tariffs by the Trump Administration against the importation of Chinese tablet components penalized their products compared to those assembled in China, thereby eliminating whatever small profit margin existed.
The current tariff system is backwards and penalizes American manufacturing: Apple, Dell, Amazon, Lenovo and other tablets that are fully assembled in China by Chinese workers are not subject to tariffs even if the components also come from China but Bak USA’s tablets assembled in the USA by Americans using Chinese components are subject to tariffs when the components are imported.
This outcome is actually ridiculous because US imposed tariffs are in fact promoting the offshoring of jobs to China. Tariffs are supposed to protect American jobs, not promote Chinese jobs. Unfortunately the current tariffs promote Chinese jobs, not those in Buffalo, New York.
Erie County stands at the ready to help the employees who were affected by this sudden closure, and to assist the Bak family in the event they attempt to reopen their company if the tariffs are lifted.

The company will reimburse customers for any unfulfilled purchase orders, Bak USA said.

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