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Aug 04, 2023ICYMI Tariffs on Electronics: What's Exempt and What's Not · EMSNow
Posted by Jennifer Read | May 20, 2025 | Americas, EMS, Feature, tariffs
As global supply chains continue to shift, US tariffs on electronics – particularly on components sourced from China – are becoming a critical cost driver for OEMs and electronics manufacturers. In this updated blog posting based on the latest data, Brian Lamers breaks down the issue.
SOURCE: Brian LamersSMT Blog
While some electronics categories are exempt, key segments like Printed Circuit Boards (PCBs) and Printed Circuit Board Assemblies (PCBAs) remain heavily taxed. Here’s a breakdown of what’s currently exempt, what isn’t, and how manufacturers can take advantage of CHIPS Act Incentives to stay competitive.
China-origin electronics are subject to the following layers of import duties:
This temporary reduction stems from a 90-day agreement between the U.S. and China to ease trade tensions. However, it’s crucial to note that certain sector-specific tariffs, particularly those related to national security concerns (e.g., fentanyl-related products), remain in effect.
The U.S. government published Annex II to Executive Order 14257, which includes a list of HTS codes exempt from the Reciprocal Tariff Policy. These exemptions offer targeted relief to strategic areas of the electronics supply chain, such as:
These categories have been prioritized to support CHIPS Act goals and preserve domestic access to advanced computing and semiconductor components.
Despite advocacy from industry groups, relief for PCBs and PCBAs remains limited. The following products are still subject to a tariff burden when imported from China:
Some assemblies may require dual classification, especially if they include control functionality or integrated circuits. Precise datasheets and part-level documentation are critical to avoiding misclassification, delays, or penalties.
Also note: Country of origin matters. A PCBA assembled in Vietnam using Chinese-origin PCBs may still trigger tariffs under US rules of origin.
To reduce exposure and align with US policy incentives, manufacturers should consider these strategies:
At SMT, we understand that navigating tariffs isn’t just about knowing the numbers – it’s about having a proactive sourcing strategy. If you’re looking to reduce your tariff burden, we offer alternative sourcing options in Vietnam, Mexico, and the US to help shift away from China-origin components. For companies exploring reshoring or domestic production, SMT can align your builds with CHIPS Act incentives to support both compliance and cost-efficiency. From quick-turn prototypes to full-scale production, we provide flexible, transparent, end-to-end support throughout your product’s lifecycle.
Brian Lamers is the Chief Operating Officer (COO) and Vice President at Surface Mount Technology Corporation, an electronics manufacturing services (EMS) provider based in Appleton, Wisconsin. With a degree from the University of Wisconsin-Whitewater and extensive industry experience, Brian is passionate about driving operational excellence and innovation in manufacturing.
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