There’s nothing worse than opening a bill to find charges you weren’t aware of. Due to the new tariff on Chinese goods, this has become the new normal in the electronics manufacturing industry. In many cases, you won’t know if the new tariff applies until you receive your invoice from your vendor, and most major distributors are now charging separate line items simply listed as “tariff fees”. In many instances, these fees are not being quoted at the time of order and appear on the invoices without warning. It’s a bit like going to a restaurant where they change the price of the meal while you’re dining.
Understanding the ever-changing tariff issue can be challenging and doing business without the proper knowledge is a major risk. That’s why we’re here to help.
Affected items include more than just the common board level components such as connectors and most passive items like capacitors, resistors, and diodes. It also impacts completed PCB assemblies as well as the machines used in the assembly process.
Below is a list of products targeted for duty increases. They include but are not limited to finished circuit board assemblies, PCBs both bare and complicated PCB assemblies and the equipment used to make them.
- Printed circuit assemblies for television cameras (8529.90.09)
- Printed circuit assemblies which are subassemblies of radar, radio nav. aid or remote control apparatus, of 2 or more parts joined together (8529.90.19)
- Printed circuit assemblies of electrical transformers, static converters, and inductors (8504.90.75)
- Printed circuit assemblies of the goods of subheading 8504.40 or 8504.50 for telecommunication apparatus (8504.90.65)
- Parts and accessories of the ADP machines of heading 8471, not incorporating a CRT, parts, and accessories of printed circuit assemblies (8473.30.20)
- Parts & accessories for machines of heading 8456 to 8461 used to make printed circuits or PCAs, parts of heading 8517 or computers (8466.93.96)
- Industrial furnaces and ovens for making printed circuits or printed circuit assemblies
- Tantalum fixed capacitors (8532.21.00)
- Electrical fixed resistors, other than composition or film type carbon resistors, for a power handling capacity not exceeding 20W (8533.21.00)
- Connectors: coaxial, cylindrical multi-contact, rack & panel, printed circuit, ribbon or flat cable, for a voltage not exceeding 1,000V (8536.69.40)
- Printed circuit assemblies for automatic teller machines of subheading (8472.90.10)
- Mechanical appliances for projecting, dispersing or spraying liquids or powders, used for making printed circuits or printed circuit assemblies (8424.89.10)
- Machine tools operated by laser, of a kind used solely or principally for the manufacture of printed circuits (8456.11.70)
Now you’re asking yourself where do we go from here? That’s a great question and one not easily answered. Without knowing your specific business and unique objectives, anyone would be hard pressed to offer an intelligent solution in a single article. The one thing we know to be true is products made in the USA can help drastically stabilize your supply chain process in unstable times. We’ve helped many OEMs to bring their builds back to America over the past few months and expect that trend to continue. Each of our SMT assembly lines is capable of placing over 52,000 parts per hour which can compete with ANY contract manufacturer foreign or domestic. Add in all the additional cost savings from building locally vs. offshore and you might be surprised with the results. For many reasons, Made in America might be the right choice for OEMs looking to re-shore their manufacturing.
Why not give us a try? Fill out the form below to check the tariff costs on your products and one of our manufacturing experts will contact you as soon as possible.