US tariffs will have global impact warn distributors
The current list of proposed tariffs contains over 1,400 products includes all tantalum, aluminium, ceramic, paper or plastic capacitors, many carbon, composition or film resistors, fuses, relays, LEDs, transistors, thyristors lithium, air zinc and silver oxide primary cell batteries.
The tariffs would increase direct costs to customers in the US but would also increase the transaction costs for manufacturers and manufacturer authorised distributors importing goods from China into the US and then shipped to international customers, says Adam Fletcher, UK-based chairman of IDEA.
To avoid the tariff manufacturers and manufacturer authorised distributors would have to drop ship goods or pay the incoming tariff and claim it back on exported products, and also ensure goods were not re-shipped into the US from China via a third-party country. “It’s an additional administrative burden for the entire electronic components supply network where the lead-times for passive components are already significantly extended,” said Fletcher.
The distributiono companies that are members of IDEA are formulating a position paper for the US Trade Representative requesting that electronic components are removed during the consultation process, which begins on 11th May 2018.
“We need to prepare for the worst and hope for the best,” he said.
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