Chinese Tariffs Impact Update: May 13th, 2019

This is a follow up on last years article Decoding Tariff Impacts on US Electronics Manufacturing that covered the newly changed Chinese Import Tariffs from July 2018.

On May 10th, 2019, the United States Trade Representative increased the import duties on Section 301 Tariff: List 3 in regards to Chinese Imports. The duty rate will increase on Section 301 Tariff: List 3 goods from the current 10% duty rates to a higher 25% duty rate.

How does this affect MacroFab and our customers?

MacroFab performs all PCB assembly in North America. Therefore, PCB assemblies made by MacroFab are not subject to the Chinese Import Tariffs. Customers that use electronic components on the list below will see a price increase from our part distributors over the next couple months as warehouse supplies roll over to new stock. Currently, our PCB manufacturers and suppliers are not affected by the tariff increase on bare PCBs.

You should not see a price increase related to the increase in Chinese Import Tariffs if you use MacroFab for your PCB assembly.

Break Down of Items on List 3

In regards to electronic components and manufacturing, here are items that may be relevant to you on the new list:

• Printed Circuit Boards
  • Unpopulated: 8534.00.00

• Electrical Components

  • Diodes

    • Surge Suppressors and TVS: 8535.40.00

• Resistors

  • Potentiometers and Rheostats: 8533.39.00

• Batteries

  • Primary cells and batteries: 8506.80.00

    • AA, AAA, Expect more “Batteries Not Included”

• Transformers

  • Electrical transformers other than liquid dielectric, having a power handling capacity less than 1 kVA: 8504.31.40

  • Electrical transformers other than liquid dielectric, having a power handling capacity of l kVA: 8504.31.60

• Inductors

  • Inductors for power supplies for ADP machines and units of heading 8471 or for telecommunication apparatus: 8504.50.40

  • Inductors: 8504.50.80

• Printed Circuit Assemblies used in the following

  • Machines of 8471not incorporating a cathode ray tube: 8473.30.11

    • Computers

    • Laptops

    • Input Devices (Keyboards/Mice)

    • Output Devices (LCD Monitors)

    • Storage Units (Disk Drives)

• Word Processing Machines: 8473:40:21

  • Typewriters

• Power Supplies for machines of 8471: 8504.90.20

  • Laptop chargers

  • Computer Power Supplies

• Domestic Microwave Ovens: 8516.90.45

• Line Telephone Handsets: 8518.90.20

• Microphones of subheading 8518.10.40: 8518.90.60

  • Telecommunication use

• Loudspeakers of subheading 8518.29.40: 8518.90.60

  • Without housing for Telecommunication use

• Assemblies & subassemblies of articles of 8520.90, consisting of 2 or more pieces fastened together: 8522.90.25

  • 8520.90 is odd

  • It was removed from the HTSUS in 2007

  • It used to cover “Sound recording apparatus, whether or not incorporating a sound reproducing device”

• Telephone answering machines: 8522.90.45

• Parts and accessories of apparatus of headings 8519 to 8521: 8522.90.65

  • 8519 is Sound recording or reproducing apparatus

  • 8521 is Video recording or reproducing apparatus, whether or not incorporating a video tuner

• Tuners: 8529.90.04

• Subassemblies thereof for color TV, w/components listed in add. U.S. note 4, chap. 85: 8529.90.49

  • Basically covers everything inside a TV

• Apparatus of headings 8525 to 8528: 8529.90.75

  • 8525: Transmission apparatus for radio-broadcasting or television

    • Set top boxes

    • Closed Circuit TV Hardware

    • CB Radios

    • TV Cameras

  • 8526: Radar apparatus, radio navigational aid apparatus and radio remote control apparatus

    • Remote Control devices

    • Radar for ship navigation

  • 8527: Reception apparatus for radio-broadcasting

    • AM/FM Radios

    • Infant Monitors

  • 8528: Monitors and Projectors

    • Computer Monitors

• Panels of subheading 8531.20: 8531.90.15

  • Industrial control panels

• Electric sound or visual signaling apparatus: 8531.90.30

  • Synthesizers

  • Music creation devices

• Apparatus of heading 8537 for one of the articles described in additional U.S. note 11 to chapter 85: 8538.90.10

  • 8537 covers devices that control the distribution of electricity

  • Note 11 covers a variety of devices

    • Automatic Teller Machines

    • Cameras

    • Optical Instruments

• Used solely or principally with the apparatus of heading 8535, 8536 or 8537:
  8538.90.30

  • 8535: Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits for greater than 1000V

  • 8536: Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits for less than 1000V

  • 8537: Contains 2 or more 8535 or 8536

Most of the increase in tariffs are for Chinese made PCB Assemblies that go into specific products. Bare, unpopulated PCBs from China are also hit with the tariff increase. Compared to the tariff increase from last July, electrical components are not seeing a sweeping increase but a more selective increase.