U.S. Video Surveillance Market Takes Another Hit from Trade Wars After Adjusting from Previous Controversies with Hikvision and Dahua

Ever since President Donald Trump enacted sweeping tariffs against many of the world’s economies, companies have had to navigate continual shocks, as shifting trade deals and interrupted supply chains significantly disrupt global business operations.

The latest tariff announcement—that a U.S. trade court on May 28 struck down the administration’s tariffs, ruling that the president had violated Congress’ sole authority to regulate international commerce—appears to be a minor reprieve for companies as financial markets rally. However, the White House quickly filed an appeal, and companies remain cautious as they brace for a continued period of uncertainty.

Like many markets, the video surveillance industry is at risk should American tariffs persist. Though it proved resilient during previous international trade disagreements, video camera supply chains face steep challenges if these wide-ranging tariffs remain in place and will likely continue to stall as a prolonged court battle approaches. 

The U.S. video surveillance market has only recently had to make significant adjustments following previous trade incidents. Presaging the current hostilities, the U.S. in 2019 banned the federal government from buying cameras from the two largest video surveillance camera manufacturers, Chinese vendors Hikvision and Dahua, citing national security concerns. Following this ban, which was executed under the 2019 National Defense Authorization Act (NDAA), American companies began weening themselves off the extremely popular and affordable Chinese-made brands. In 2022, the Federal Communications Commission (FCC) escalated the restrictions, prohibiting new equipment authorizations from the manufacturers and effectively stopping their sales into the country.

The bans dealt a significant blow to Hikvision and Dahua’s market share in the United States. According to a report from IPVM, after the ban, the FCC had created routes for Hikvision and Dahua to reenter the U.S. market, providing that they ensured they would not sell their products to forbidden customers like the federal government or critical infrastructure sites. However, the Trump administration’s tariffs on Chinese goods will likely postpone any opportunity for Chinese camera manufacturers to recover their dominance in the American market, even if the President’s tariff plans are now under legal review.

After the Hikvision and Dahua bans, competing video surveillance manufacturers worked hard to stand out as trustworthy alternatives. Vivotek, a Taiwanese video surveillance company, has proven resilient in the American market, with a recent annual report showing that 54.94% of its sales were in the United States in 2024. However, the looming threat of a 32% tariff on Taiwanese goods could hinder the momentum Vivotek gained after the Hikvision and Dahua bans. The same applies to other non-U.S.-based companies that likely received a similar boost after the bans, including Swedish company Axis Communications and South Korean-based Hanwha Vision. Both companies have likely been adversely affected by tariffs targeting their home countries.  

The Trump administration has defended its harsh trade policy, insisting that expansive global tariffs will push manufacturing companies back to the United States. However, U.S.-based video surveillance companies will not be immune to the tariffs’ resulting supply chain disruptions. As many critics of the administration’s trade policies have argued, U.S.-based manufacturers continue to rely on international trade partners for vital equipment components. Honeywell, for example, is a popular U.S. manufacturer of video surveillance cameras that still relies on Chinese and Indian manufacturing to make some of its products. The American company will likely face significant disruption if high tariffs remain in place.

Even U.S.-based Motorola, a company that proactively responded to the Hikvision and Dahua bans, will be implicated in the tariff fallout. Motorola is a leading manufacturer of video surveillance and body cameras. In 2021, the company established an expansive video security and analytics manufacturing center in Richardson, Texas. The facility announcement press release said the company will focus on manufacturing NDAA-compliant products, a semi-veiled swipe at Hikvision and Dahua’s NDAA ban. Moreso than other American video manufacturers, Motorola made a prescient bet that “Made in the USA” would become an important differentiator for security device manufacturers.

However, even in establishing domestic manufacturing, Motorola’s camera products are likely built with components that continue to rely on the global supply chain. Even the most prepared video surveillance company could not predict such drastic trade hostilities that would extend to traditionally allied nations that supply integral camera components. As a result, no matter how much a company is biased toward U.S.-based manufacturing, camera component prices will likely increase across the board, affecting foreign and domestic companies alike until the U.S. trade courts make their final ruling.