Import tariffs on August 23, connectors bear the brunt

According to the frontier announcement of the "Announcement of the Member of the Customs Tariff Commission of the State Council on Imposing Additional Tariffs on Imports of US$50 Billion Originating in the U.S.", the second list of U.S. tariffed goods will be adjusted, and it will be adjusted from 12:00 on August 23, 2018. Starting from 01, additional tariffs will be imposed.

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

It is understood that the related connector brands involve 3M, MOLEX, TE, TYCO, AMPHENOL, ARK-LES, DELPHI, HEYCO, MULTICOMP, etc.

International e-commerce reporters learned from finance and taxation professionals that imported products generally need to pay import duties and import value-added tax. Qualified import processing enterprises can be exempted from value-added tax, but for general trade, they are not exempted from value-added tax. The amount of import duty is the duty-paid price * the import duty rate. The import value-added tax amount is the dutiable price + tariff amount + consumption tax amount and * value-added tax rate. However, the value-added tax can be deducted through domestic sales or export for input value-added tax or exemption and refund.

The main thing that really affects product prices is import tariffs. 25% means that the price of the product has increased by a quarter. With the levy of connector tariffs, the price increase of products originating in the United States has become inevitable, and some people have expressed that it will benefit the development of domestic connectors.

The list drawn as early as June did not include connectors, but the list of connectors announced on the 8th of this month was impressively listed, which has attracted widespread attention from component suppliers and buyers. Judging from the currently published list, most of them involve passive components, not integrated circuit products, and integrated circuits are the top priority of semiconductor products. The industry keeps a high degree of attention to which ones will be included in the scope of the levy.

Beginning on July 6, the United States imposed additional tariffs on approximately US$34 billion worth of Chinese exports to the United States. At the same time, China also imposed additional tariffs on imports of soybeans and other agricultural products, automobiles, and aquatic products that originated in the United States. The tax rate is 25%, involving China's imports from the United States of approximately US$34 billion in 2017.

The United States will impose additional tariffs on the remaining approximately $16 billion of goods on the 23rd, and China has taken corresponding actions to impose 25% import tariffs on chemicals, medical equipment, energy products and other commodities imported from the United States. Involving China's imports from the United States in 2017 was approximately US$16 billion.

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