Tariffs Update

Dear Valued Customer,

As of July 6, 2018, the United States has issued tariffs on imports of certain products made in China. The specific products subject to tariff are identified by their HTS code classification under the Harmonized Tariff Schedule of the United States.

To date, the Office of the United States Trade Representative (USTR) has published 4 lists of products that, if made in China, are subject to tariff upon importation into the U.S.:

List 1 (effective Jul. 6, 2018) – duty of 25%

List 2 (effective Aug. 23, 2018) – duty of 25%

List 3 (effective Sep. 24, 2018) – duty of 25% (increased from previous rate of 10% on May 10, 2019

List 4 (effective Feb. 14, 2020) – duty of 7.5% (decreased from previous rate of 15% on Jan. 22, 2020)

On May 14, 2024, the USTR announced it will add or increase tariffs on specific items in 2024, 2025 and 2026. On Sep. 18, 2024, the USTR published a Notice of Modifications that details these changes.  Effective January 1, 2025, certain USTR-designated ”Semiconductors” will be subject to a duty increase from 25% to 50%.

On February 1st 2025, President Trump announced an additional 25% tariff on all Canadian imports and a lower 10% tariff on Canadian oil and gas imports. The order included a 25% tariff on all imports from Mexico and included an additional 10% tariff on all imports from China. These tariffs come into effect midnight February 4th 2025. On February 3rd, U.S. President Donald Trump paused new tariffs on Mexico and Canada for one month.

Current guidance from CSMS #63988468 regarding additional duties on imports from China.

Effective with respect to goods that are the product of China and Hong Kong entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Standard Time on February 4, 2025, the following HTSUS classifications and additional duty rates apply:

9903.01.20: All imports of articles that are products of China and Hong Kong, other than products classifiable under headings 9903.01.21, 9903.01.22, and 9903.01.23, and other than products for personal use included in accompanied baggage of persons arriving in the United States – an additional ad valorem rate of duty of 10%.

WPG Americas is working diligently and partnering with our suppliers and the Electronic Component Industry Association to mitigate the burden on our customers as much as possible. In many cases, we are able to reduce or eliminate the tariff charges for our customers. However, if this is not an option, we will be forced to pass through the applicable tariff to our customers.

As this dynamic situation progresses, WPG Americas is here to help. We are following new developments closely and will continue to share supplier and product updates with you as they become available. You may also contact your WPG Americas sales rep should you have any questions.

Thank you,

WPG Americas Inc. Leadership Team