China and Taiwan are the two largest sources of electronic components for US importers. The tariff difference is stark: China faces up to 60% effective rate for semiconductors (50% Section 301 + 10% Section 122), while Taiwan faces only the 10% Section 122 surcharge. For a $100K semiconductor BOM, this difference amounts to $50,000 in additional duties.
On a $100,000 BOM, China incurs $60,000 in duty vs $10,000 from Taiwan — a difference of $50,000 per order.
| Source | Duty Rate | Duty Amount | Landed Cost |
|---|---|---|---|
| China | 60% | $60,000 | $160,000 |
| Taiwan | 10% | $10,000 | $110,000 |
| Savings from Taiwan | $50,000 | $50,000 | |
* Estimate for electronics HTS chapters 8541–8542. Actual duty depends on specific HTS code, MPF, HMF, and customs value.Calculate exact duty →
China faces two tariff layers: the 10% Section 122 global surcharge that applies to all countries, plus a 50% Section 301 tariff on semiconductor ICs (HTS chapters 8541–8542, effective Jan 1, 2025) imposed for trade practices. Taiwan is not subject to Section 301, so it only pays the 10% Section 122 rate.
No. US Customs and Border Protection applies tariffs based on the country where substantial transformation occurred — not the last port of export. Re-routing China-origin goods through Taiwan without substantive manufacturing in Taiwan is a customs violation subject to penalties, seizure, and potential criminal charges.
Yes — for specific HTS codes, USTR has granted temporary exclusions (typically 9903.88.xx codes) that can reduce or eliminate the Section 301 surcharge. These are product-specific and time-limited. Use TariffTracker to look up exclusions for your specific HTS codes.
PCBs remain predominantly China-sourced (Shenzhen/Suzhou ecosystem), as are most cable assemblies, LCD/TFT displays, lithium battery packs, and certain passive components. For these non-semiconductor items, the 35% tariff (25% Section 301 + 10% Section 122) is often unavoidable unless you qualify for exclusions or shift to Mexico/USMCA production.
Section 122 is a 10% tariff imposed under the IEEPA on electronics imports from all countries (implemented 2025-2026). It applies regardless of country of origin — including Taiwan, Japan, Malaysia, South Korea, and even US territories. The Supreme Court upheld most of these tariffs in 2026.
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