I really need to get back to writing about techniques and technology, but today, it’s parts again. Parts pricing, specifically. We have some tariffs coming up on parts imported from China, starting on July 6th. Specifically, a 25% tariff will be levied on certain goods with the country of origin listed as China. Taiwan and Hong Kong are not included.
We won’t know exactly which components are affected until it happens. It’s a pretty complex issue. Many components manufactures have fabs in multiple countries. Our distributors are telling us that they may not even know which country the part is fabbed in until they receive it. Monday’s chips may be subject to the tariff and Tuesday’s may not.
This all happened so quickly that many of our distributors haven’t quite settled on their policies surrounding the tariffs yet. That leaves even more unknown for us. All that we know is that starting July 6th, some parts will be 25% more expensive for us. We do have to pass that cost on. Unfortunately, many component prices have already crept up due to shortages. This will be piled on top of that.
What we do know:
- Starting July 6th, some components that we buy will cost us 25% more
- We will need to pass that cost on to our customers
What we don’t know:
- We don’t know exactly which components will be affected
- We don’t know what it means if a component is fabbed both inside and outside of China
And please note that this is not a political statement of any sort. Over the years these things come and go. We just want to help engineers by building their cool stuff, and we have to navigate pricing and availability to do so. This post is just about keeping you as aware as we can, not making any kind of a statement on anything regarding policy or politics.
Just swingin’ on the flippity-flop ’cause the harsh realm