Market Intelligence
August 31, 2019

The US-China tariff war continues to affect the electronic components and finished goods markets

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Tariffs on Chinese imports are expected to go into effect sooner than anticipated and at a higher rate – including various electronic components and finished goods. The increase follows Beijing’s announcement on August 23, that they would apply $75 billion in tariffs on US goods.  

The increasing tensions between countries have resulted in: 

  • Fifteen percent tariff on certain goods, which is slated to begin on September 1, and December 15.  
  • Some goods that currently have a 25 percent tariff will be raised to 30 percent.  

Below is a list of electronic components and finished goods that will be affected by the increases. Please note that certain components, such as CPUs that already have a 25 percent tariff, will not be increased. 

Date
Sept. 1
Oct. 11
Dec. 15
Tariff
15%
30%
15%
Items Affected
SSDs
Tape drives
Printers
Desktop PCs &
servers



Lithium-ion
batteries
Computer parts
Motherboards
Memory
modules
Smart cards
Video cards
Keyboards
Laptops




According to Reuters, this increase is two years in the making, as the Trump administration has been fighting to end unwarranted trade practices and change policies on intellectual property protection. 

On August 29, Bloomberg reported that China will not retaliate immediately in hopes the two countries’ leaders can find a way to de-escalate the trade war. As such, the situation could change between now and when the new tariffs are implemented. 

Fusion Worldwide is taking extra measures to identify country of origin for affected products and will continue to update you on changes. 

For a complete list of the tariffs click here

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