As 2025 approaches, evolving tariff policies are poised to significantly impact the electronics and raw materials markets, particularly for printed circuit board (PCB) assemblies and controllers. Here’s what you need to know about the latest updates and how they may affect your supply chain.
The Section 301 Tariff Landscape
Initially implemented in 2018, Section 301 tariffs were aimed at addressing China’s trade practices, such as forced technology transfers and intellectual property violations. Under the Biden Administration, these tariffs were not only retained but were also increased in 2024, with some rates reaching 100%.
A critical legal challenge (HMTX v. U.S.) may shape the future of these tariffs, with over 4,000 importers arguing they were implemented illegally. While the court’s decision could have far-reaching implications, for now, the tariffs remain in effect, and no exclusion processes are available.
Key Tariff Increases for 2025
Effective January 2025, tariff rates on many vital electronic components will double, including:
- Semiconductors
- Diodes and transistors
- Electronic integrated circuits
For example, components like thyristors and processors, once subject to a 25% tariff, now face a 50% duty.
Potential Impacts on Your Supply Chain
- Price Increases: The higher tariff rates may lead to rising costs for essential components, including PCBs and controllers. This could affect pricing for final assemblies.
- Supply Chain Delays: Continued trade tensions and logistical disruptions may result in extended lead times for some parts, especially high-demand items.
- Sourcing Challenges: Finding alternative suppliers in non-tariff-impacted regions could take time, impacting availability.
Our Strategy to Mitigate Impact
We’re proactively addressing these challenges to minimize disruption:
- Exploring Alternative Suppliers: We’re evaluating new sources for components outside heavily tariffed regions.
- Component Substitution: When feasible, we’ll identify lower-tariff alternatives that maintain quality and performance.
- Transparent Pricing Updates: We’ll keep you informed about any adjustments necessitated by these changes.
What’s Next?
We’re committed to supporting your business through these changes. Our team is closely monitoring tariff developments and working to mitigate their effects on your operations.
If you have questions or need guidance on how these updates may affect specific products, don’t hesitate to reach out. Together, we’ll navigate these challenges and ensure a smooth transition into 2025.
Below is a summary of some of the most significant tariff categories for 2025:
| HTS Code | Product Description | 2024 Tariff Rate | 2025 Tariff Rate |
|---|---|---|---|
| 8541.10.00 | Diodes, other than photosensitive or light-emitting diodes | 25% | 50% |
| 8541.21.00 | Transistors, other than photosensitive transistors, with a dissipation rating of 1 W or more | 25% | 50% |
| 8541.29.00 | Transistors, other than photosensitive transistors, with a dissipation rating of 1 W or more | 25% | 50% |
| 8541.30.00 | Thyristors, diacs, and triacs, other than photosensitive devices | 25% | 50% |
| 8541.49.10 | Other photosensitive semiconductor diodes, other than light-emitting | 25% | 50% |
| 8541.49.70 | Photosensitive transistors | 25% | 50% |
| 8541.49.80 | Photosensitive semiconductor devices nesoi, optical coupled isolators | 25% | 50% |
| 8541.49.95 | Other photosensitive semiconductor devices, other than diodes or transistors, nesoi | 25% | 50% |
| 8541.51.00 | Other semiconductor-based transducers, other than photosensitive transducers | 25% | 50% |
| 8541.59.00 | Other semiconductor devices, other than semiconductor-based transducers, other than photosensitive devices, nesoi | 25% | 50% |
| 8541.90.00 | Parts of diodes, transistors, similar semiconductor devices, photosensitive semiconductor devices, LEDs and mounted piezoelectric crystals | 25% | 50% |
| 8542.31.00 | Electronic integrated circuits: processors and controllers | 25% | 50% |
| 8542.32.00 | Electronic integrated circuits: memories | 25% | 50% |
| 8542.33.00 | Electronic integrated circuits: amplifiers | 25% | 50% |
| 8542.39.00 | Electronic integrated circuits: other | 25% | 50% |
| 8542.90.00 | Parts of electronic integrated circuits and microassemblies | 25% | 50% |