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We are already seeing parts having gone up from half a cent to 10 cents on some high-demand capacitors at volume, this is before tariffs kick in.w/ automotive ratings, and you’ll need to get closer to the manufacturers and other consumers in the supply chain to keep costs from ballooning on these line items Expect the bidding to get hotter on high-volumes of short-supply passives, esp.Impacts of Tariffs on the current Component Shortages.Tariffs this is a boon for NAFTA, but not necessarily for US manufacturing.NAFTA is not going anywhere anytime soon.Flex has been downsizing their high margin/mid volume segment, laying off 10% of their workforce as demand for telecom and datacom equipment has dropped, and focusing on higher volume and lower margin builds in the US.We’ll see more assembly shifting away from US to places like Mexico which have lower tariffs on components between China and them, and little to no tariffs on final goods coming into the US.Overall, we’re predicting from about 2%-10% increase in COGS for most electronics produced in the US until all ICs are included, at which point the impact to COGS will increase dramatically.
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Initial impacts will be slightly increasing prices, potentially rapidly moving stock as buyers look to lock in current pricing.Pricing on most things won’t increase until existing stock gets depleted from inventory at US warehouses.Shouldn’t see a huge impact from LEDs, while China has grown from 10% of the market of production in 2010, to over 65% now, the majority of their production - 95% - is used internally in assembling LED lighting for sale.Biggest impact on pricing will come from the mechanical components, and specialty actives like high-current FETs.Passives, actives excluding ICs and diodes, mechanical components like switches, connectors, etc.What kind of items in the Tariff list will impact US Electronics Manufacturing?.Recent article Decoding Tariff Impacts on US Electronics Manufacturing.
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