TechCraft Electronics, Inc.
Tariff Impact Report
Electronics Manufacturing
Mid-Market
$25M-$50M
$8.2M annually
Executive Summary
Tariff Impact Score
Annual Cost Impact
$1.2M
Supply Chain Risk
Moderate
Competitive Positioning
Favorable
Evaluate alternative suppliers in Vietnam and Malaysia to reduce tariff exposure on electronic components by up to 22%.
Implement tariff engineering strategies for product categories 8517.62 and 8517.70 to potentially save $340,000 annually.
Review pricing strategy for products with highest tariff impact to maintain competitive positioning.
Explore domestic sourcing options for aluminum components to mitigate Section 232 tariff impacts.
Detailed Impact Analysis
| Product | HS Code | Origin | Current Rate | Previous | Annual Volume | Impact |
|---|---|---|---|---|---|---|
| Circuit Boards | 8517.62.0090 | China | 25% +15.0% | 10% | $2.4M | $360K |
| Display Modules | 8517.70.0000 | China | 25% +15.0% | 10% | $1.8M | $270K |
| Power Supplies | 8504.40.9550 | China | 25% +25.0% | 0% | $1.2M | $300K |
| Aluminum Enclosures | 7606.12.3030 | Canada | 10% +7.0% | 3% | $950K | $66.5K |
| Electronic Switches | 8536.50.9065 | Taiwan | 2.7% | 2.7% | $780K | $0 |
| Plastic Components | 3926.90.9985 | Mexico | 5.3% | 5.3% | $650K | $0 |
| Semiconductor Chips | 8542.31.0000 | China | 25% +25.0% | 0% | $1.4M | $350K |
Circuit Boards
HS: 8517.62.0090$360K
Display Modules
HS: 8517.70.0000$270K
Power Supplies
HS: 8504.40.9550$300K
Aluminum Enclosures
HS: 7606.12.3030$66.5K
Electronic Switches
HS: 8536.50.9065$0
Plastic Components
HS: 3926.90.9985$0
Semiconductor Chips
HS: 8542.31.0000$350K
Concentration Risk
High Supplier Concentration
73% of electronic components sourced from a single region in China
Medium Country Concentration
52% of total imports originate from China
Low Component Concentration
No single component represents more than 15% of import value
Alternative Sourcing Availability
Electronic Components
Multiple qualified suppliers available in Vietnam, Malaysia, and Mexico
Circuit Boards
Limited suppliers in Taiwan and South Korea with necessary certifications
Specialized Semiconductors
Highly specialized components with limited global suppliers
Strategic Recommendations
Diversify your supply chain by exploring alternative sourcing options in countries with lower or no tariffs.
Optimize your supply chain structure to minimize tariff exposure while maintaining quality and reliability.
Implement pricing and financial strategies to mitigate tariff impacts on your bottom line.
Detailed Recommendations
Diversify Supply Chain with Southeast Asian Suppliers
Shift 60% of Chinese-sourced electronic components to suppliers in Vietnam and Malaysia to reduce Section 301 tariff exposure.
Identify qualified suppliers in Vietnam and Malaysia, conduct quality audits, negotiate contracts, and implement phased transition over 6-9 months.
Implement Tariff Engineering for Circuit Boards
Modify circuit board designs to qualify for alternative HTS classification with lower duty rates.
Work with engineering team to redesign circuit boards, verify new classification with customs broker, and update product documentation.
Pursue Section 301 Exclusion Requests
Prepare and submit exclusion requests for critical semiconductor components where alternative sourcing is not viable.
Gather supporting documentation, draft compelling economic harm arguments, submit formal requests, and prepare for potential USTR hearings.
Optimize Pricing Strategy for Tariff-Impacted Products
Implement strategic price adjustments for products with highest tariff impact to maintain margins while preserving market share.
Conduct competitive pricing analysis, identify products with price elasticity, implement tiered pricing structure, and monitor market response.
Regulatory Strategies
Tariff Engineering Opportunities
Consider product modifications that could result in different HTS classifications with lower duty rates. For example, minor changes to your electronic components in category 8517.62 could potentially qualify for duty-free treatment.
Exclusion Request Guidance
Prepare Section 301 exclusion requests for critical components where alternative sourcing is not viable. Focus on demonstrating severe economic harm and lack of available alternatives.
Classification Optimization
Review current HTS classifications for accuracy and potential opportunities. Several of your imported items may qualify for more favorable duty treatment under alternative classifications.
Data Visualizations
Tariff Impact by Product Category
EC
CB
DS
BT
SC
AL
PC
PK
MT
CB
FS
RP
ST
GL
TX
PP
Tariff Changes Timeline
Supply Chain Vulnerability
Strategic Options Comparison
Estimated Annual Savings by Strategy
Appendices & Resources
Tariff Schedules Relevant to Your Business
| HTS Code | Description | General Rate | Section 301 (China) | Section 232 |
|---|---|---|---|---|
| 8517.62.0090 | Machines for the reception, conversion and transmission or regeneration of voice, images or other data | Free | 25% | N/A |
| 8517.70.0000 | Parts of telephone sets, including smartphones and other telephones for cellular networks | Free | 25% | N/A |
| 8504.40.9550 | Power supplies for automatic data processing machines | Free | 25% | N/A |
| 7606.12.3030 | Aluminum alloy plates, sheets and strip, of a thickness exceeding 0.2mm | 3.0% | N/A | 10% |
| 8536.50.9065 | Electrical switches for a voltage not exceeding 1,000 V | 2.7% | 25% | N/A |
Glossary of Trade Terminology
Harmonized Tariff Schedule (HTS)
A standardized numerical method of classifying traded products used by customs authorities around the world to identify products for the application of duties and taxes.
Section 301 Tariffs
Additional duties imposed by the United States on certain Chinese imports under Section 301 of the Trade Act of 1974, based on findings related to China's intellectual property practices.
Section 232 Tariffs
Duties imposed on certain steel and aluminum imports based on national security concerns under Section 232 of the Trade Expansion Act of 1962.
Tariff Engineering
The legal practice of designing or modifying products to achieve the most favorable tariff treatment while maintaining the essential character and functionality.
Country of Origin
The country where a product was manufactured, produced, or substantially transformed, which determines applicable duty rates and trade measures.
First Sale Rule
A customs valuation method that allows importers to pay duties on the price paid in the first sale of a multi-tiered transaction, potentially reducing duty liability.
De Minimis Threshold
A value threshold below which imports are exempt from duties and taxes, currently set at $800 per shipment for the United States.
Helpful Resources
Action Plan Template
Immediate Actions (0-30 days)
Schedule meeting with procurement team to review alternative supplier options in Vietnam and Malaysia
Consult with customs broker regarding potential HTS reclassification opportunities
Begin drafting Section 301 exclusion requests for critical components
Short-Term Actions (30-90 days)
Initiate supplier qualification process for top 3 alternative suppliers
Implement pricing adjustments for products with highest tariff impact
Develop tariff engineering specifications for product categories 8517.62 and 8517.70
Medium-Term Actions (3-12 months)
Begin transition to qualified alternative suppliers
Implement product modifications for tariff engineering
Establish secondary supply chain for critical components
Methodology & Data Sources
This report was generated using AI-powered analysis of your company data combined with current tariff information from official government sources. Tariff rates and regulations are current as of 3/13/2025.
Primary data sources include the Harmonized Tariff Schedule of the United States (HTSUS), U.S. Trade Representative (USTR) notices, U.S. Customs and Border Protection (CBP) rulings, and industry trade data. Company-specific data was provided by you during the onboarding process.