Table of contents
Current Tariffs on Chinese Components
70%-195% tariffs seem like a pretty good reason to panic. There are three tariffs that apply to semiconductors; Section 301, IEEPA, and Reciprocal. We’ll break them down one-by-one, but when you consider how few Chinese components leave China as components, the real impact is a lot smaller than the headlines suggest.
U.S. Chip Imports By Value
Source: Semiconductor Industry Association and U.S. Census Bureau
Section 301: The OG of Tariffs
Originally applied by President Trump during his first term as a 25% tariff, the most recent update to Section 301 tariffs came from the Office of the U.S. Trade Representative under President Biden on September 18, 2024 (Federal Register No. 2024-21217). The order doubled existing tariffs on key semiconductor categories from 25% to 50%, effective January 1, 2025. These tariffs apply to China and Hong Kong but not to other countries, which continue under MFN (most-favored nation) rules.
- China and Hong Kong: 50%
- Mexico & Canada: 0% No Section 301 tariff
- All Other Countries: 0% No Section 301 tariff
Based on current industry classifications and customs data, all HTS codes we have observed for semiconductors, PCBs, and PCB assemblies sourced from China are subject to the Section 301 tariffs. This includes HTS codes in Chapters 85 and 90 most relevant to electronic components.
Common HTS Codes Impacted
- 8541.x / 8542.x: Semiconductors, now at 50%
- 8534.00.0020 / 0040: Two- and four-layer rigid PCBs excluded until May 31, 2025
- 8534.00.00: Other bare PCBs—25% duty
Assemblies (like PCBAs) inherit their tariff treatment from the HTS code of the final product. So a Chinese component assembled into a PCBA in Thailand is NOT subject to China tariffs because the country of origin for the PCBA will be Thailand.
You can assume any Chinese PCBAs you import as PCBAs are tariffed (unless specifically excluded).
IEEPA Tariffs, aka 'Fentanyl Tariffs'
Under Executive Order 14195, signed February 1, 2025, and published February 7, 2025 (Federal Register No. 2025-02408) the U.S. imposed tariffs using emergency powers under the International Emergency Economic Powers Act (IEEPA). These tariffs took effect February 4, 2025, and apply to all goods from China (including Hong Kong), Mexico, and Canada. The original 10% duty on Chinese goods was increased to 20% via Executive Order 14228 on March 3, 2025 (Federal Register No. 2025-03775).
- China and Hong Kong: 20%
- Mexico and Canada: 0% The 25% tariff was suspended as of April 2025 pending further negotiations with both countries. Imports from Mexico and Canada are currently not subject to the IEEPA duties, though the legal framework remains active. This suspension applies only to goods with no tariff under the USMCA trade agreement.
- All Other Countries: 0% Not included
These are blanket tariffs, and for China they are in addition to existing Section 301 tariffs. No HTS codes are exempt. Even goods eligible for free trade under USMCA are covered as currently written (though likely to be changed). From our review, all HTS codes relevant to electronic components are included in the USMCA and therefore excluded for now with respect to Mexico and Canada.
Note: Canadian energy exports are an exception and remain at 10%.
Reciprocal Tariffs: Matching Foreign Barriers Globally
On April 2, 2025, the White House issued Executive Order 14257 creating the Reciprocal Tariffs Policy. This action, published April 7, 2025 (Federal Register No. 2025-06063), established a new 10% base duty on nearly all imports from all countries except Mexico and Canada. While country-specific surcharges were announced for 57 trading partners, as of May 2025, all country-specific rates are suspended except for China and Hong Kong. Imports from all other countries except Mexico and Canada currently face only the baseline 10% duty.
The China baseline rate was later increased to 125% under Executive Order 14266, signed April 9, 2025, and published April 15, 2025 (Federal Register No. 2025-06462). On May 14, 2025 the White House issued an Executive Order suspending the special rate for China for 90 days, leaving the Reciprocal Rate for China at 10% (the base duty rate for all countries). The 10% rate remains in effect for other countries except Mexico and Canada.
- China and Hong Kong: 10% (for now)
- Mexico and Canada: 0%
- All Other Countries: 10%
Reciprocal tariffs are in addition to any applicable Section 301 or IEEPA tariffs.
Annex II to Executive Order 14257 outlines specific product exclusions from the Reciprocal Tariffs. Notably, semiconductors (HTS 8541 and 8542), semiconductor manufacturing equipment, and certain end-use consumer electronics like smartphones and laptops are exempt from the reciprocal tariffs.
See Annex II Exclusion List: Annex II PDF
While semiconductors were exempted, passive components like capacitors and resistors are not.
China Tariffs Summary Table
This table summarizes current effective tariffs on Chinese-origin electronic components as of May 2025. Rates reflect formal U.S. trade actions under Section 301, IEEPA, and the Reciprocal Tariff Policy.
Component Type Section 301 IEEPA Reciprocal Total
Semiconductors 50% 20% Exempt 70%
Passives & Others 50% 20% 10% 80%
Are PCBs and Assemblies Tariffed?
Yes, but specifics vary for Chinese PCBs.
- PCBs: 2-4 layer 145%, 6 layer and up 170% (some of these rates are suspended for 90 days until August 2025).
- Exclusions: 2- and 4-layer are protected until May 31, 2026, then they rise to 170% (some of these rate are also suspended for 90 days.)
- Assemblies: Follow end-use classification. There’s no blanket exemption for PCBAs, they are tariffed unless integrated into a higher level assembly that is not tariffed.
Domestic PCB suppliers in particular are getting swamped. Even with the tariffs it can still be faster and cheaper to source PCBs from China.
Who Pays and When
Tariffs are paid by the U.S. importer (think distributors like DigiKey and Mouser, or EMS companies) based on the country of origin and HTS code. Customs collects at the time of entry. In-transit goods before an EO’s effective date are exempt. See our Expert Guide to Understanding Tariffs for more on the basics.
Don’t get overcharged for new tariffs. Goods already in the U.S. are not subject to new tariffs. It takes weeks for a product to get shipped from China to the U.S. so anyone charging you tariffs right after implementation is probably over-charging.
Pro Tip: Tariffs are assessed on the distributor's cost, not the price you pay. A component with a 70% tariff that you pay $10.00 for should not cost you an additional $7.00. Estimate the tariff by assuming the distributor's cost is 80% of online prices and use this cost to calculate reasonable tariffs. Also watch for distributors or EMS companies wanting to add margin to the tariff. There’s nothing technically wrong with that, but most companies won’t do it to valued customers.
The Real Impact on U.S. Manufacturing
The loudest voices say tariffs wreck hardware margins. Reality is more nuanced.
Semiconductors
- Only 3% of U.S. chip imports by value came from China in 2024
- Malaysia, Taiwan, Vietnam, and Thailand made up 60%+, these countries are subject to 10% Reciprocal tariff.
- For most OEMs manufacturing PCBAs in the U.S., tariffs barely touch total product cost.
Passive Components
- 5–10% of a typical BOM cost, lower for high value BOMs
- Many passives come from China
- Most can be cross-referenced to non-China sources.
- A 195% tariff on a 1¢ part? That part is now about 3¢ per unit. Weigh the cost of mitigation against just paying the tariff.
PCBs
- These hurt more, and substantially all PCBs come from China
- A $3 board now costs $7.35 with a 145% tariff
- That’s why buyers are qualifying shops in Taiwan, India, Thailand
Where to Find HTS Codes and Country of Origin Data
- Arrow and Avnet both publish Country of Origin.
- DigiKey and Mouser do not.
- X-Refs.com provides a free tariff lookup tool for COO, HTS, and tariff rate.
- Silicon Expert, Accuris, and Z2 Data provide COO and HTS as part of data subscriptions.
Cofactr shows the tariff cost in the price of purchase so you know what the exact cost will be.
Data aggregators like Octopart and Findchips do not typically provide country of origin. This is not their fault, it’s because the distributors are not providing it to them.
Final Word: Who Should Panic?
Tariffs matter—but not as much as some headlines imply. Most of the real cost pressure still comes from design choices, supply shortages, and vendor MOQs—not duties.
If you are currently sourcing PCBAs in the U.S. you should not see much impact, but watch out for your PCBs.
However, if you’re sourcing PCBAs, sub-assemblies, or final product through China it’s may be time to look elsewhere. Just don’t get spooked by a 195% number that only applies to a $0.01 part.
Want to make this easy? Schedule a free, no obligation Cofactr demo to see how we can help you automate price evaluation, component swaps, and much more.