US-China Trade War to impact the price of electronics

The US-China trade war continues to march on, with the Trump administration announcing a 25% import tariffs on approximately $16 billion worth of Chinese (PRC, People’s Republic of China) manufactured goods.  

While this isn’t unusual for the current American government, this new set of tariffs will have an impact on electronics and other vital semiconductor components, as well as items like vehicle components, optical fibres, agricultural equipment and more. A full list of affected products is available to read here. 

Included in this list is “Electronic integrated circuits: processors and controllers”, “Electronic integrated circuits: memories”, “Electronic integrated circuits”  amplifiers and a wide range of other electronic components, creating a situation where America’s Tariffs will force the pricing of electronics up, at least within the US. 

 

 

Thankfully, for US customers, not all electronics come from China (PRC), with Taiwan (ROC, Republic of China), South Korea, Japan, Thailand, Singapore and Malaysia all acting as major exporters of electronic components, PC hardware and other electrical items. Even so, some industries will be forced to raise their prices, as starting on August 23rd, Chinese-made electronics will have a 25% import tariff.  

Component cost increases will eventually hit the supply chains of electronics manufacturers and will force increased retail prices, which is something that may harm US consumers and companies in the long term. China is currently the US’ primary source of electronics imports.  

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