Adding tariffs on August 23, the connector is the first to bear the brunt

According to the frontier announcement of the “Notice of the Customs Tariff Commission of the State Council on Adding Tariffs to Imports of US$50 Billion of Imported Goods”, the list of US and Canada tariffed goods will be adjusted, and at 12 o'clock on August 23, 2018. From 01 points onwards, the implementation of tariffs.

This also means that the relevant imported products originating in the United States will be subject to a 25% tariff. This is also the product of the electronic components that was affected by the addition of tariffs. Previously, the original import tax rate for connectors was 0%.

It is understood that the brand of related connectors involves 3M, MOLEX, TE, TYCO, AMPHENOL, ARK-LES, DELPHI, HEYCO, MULTICOMP and so on.

International electronic business reporters have learned from finance and tax professionals that imported products generally need to pay import duties and import value-added tax. VAT can be exempted for qualified import processing enterprises, while VAT is not exempted for general trade. The import duty tax is the duty-paid price* the inward tariff rate. The import value-added tax is the duty-paid price + tariff tax + consumption tax and then * value-added tax rate. However, the value-added tax can be deducted by domestic sales or export for value-added tax or non-refundable.

The main factor affecting the price of the product is the import tariff. 25% means that the price of the product has increased by a quarter. With the increase in the tariffs on the connectors, the price increase of products originating in the United States has become inevitable, and some people said that they will benefit the development of domestic connectors.

As early as June, the list was not included in the list, and the plug-in in the second list published on the 8th of this month was listed, which was widely concerned by the supply and demand side of components. From the list published so far, most of the passive components are involved, and integrated circuit products are not involved. Integrated circuits are the top priority of semiconductor products, and the industry attaches great importance to which will be added to the scope of collection.

Beginning on July 6, the United States imposed tariffs on about 34 billion US dollars of Chinese exports to the United States. At the same time, China also imposed tariffs on imported goods such as soybeans and other agricultural products, automobiles and aquatic products originating in the United States. The tax rate is 25%, which involves the import of US$34 billion from the United States in 2017.

The United States will impose tariff measures on the remaining $16 billion in commodities, which will be implemented on the 23rd, and China has taken corresponding actions to impose a 25% import tariff on chemicals, medical equipment, energy products and other commodities imported from the United States. Involved in the import of China from the United States in 2017, the amount of about 16 billion US dollars.