Navigating PCB and Component Tariffs in 2025: How to Manage the Costs and Complexity
- sdowney40
- 7 days ago
- 3 min read
The latest round of US tariffs on imported PCBs and electronic components has introduced new challenges for PCB assembly companies. Not only do the tariffs increase costs and make pricing unpredictable, but they also add a layer of complexity to the already lengthy configure, price, and quote (CPQ) process. As of April 7, 2025, imported PCBs and components from China now face up to 145% in cumulative tariffs introduced under Executive Order 14257 and are likely to change even further in the short term. Assembly shops relying on these imported goods can expect significant expenses, impacting profit margins.
In recent years, China has remained dominant in the global market for PCBs and electronic components, influencing significant segments of these industries. This means changes in the trade policies of Chinese electronic goods will have major implications for global supply chains.
Smarter Tariff Management
Calculating tariffs for your PCBs and each component can be very time-consuming and error-prone, increasing the effort required from your quoting team and creating financial risk. Instead of identifying the harmonized system (HS) code for each component to check applicable tariff rates and determining if the supplier has already included the cost in their pricing, automation tools are available to reduce pricing errors related to fluctuating tariffs.
In response to the new complexities brought by tariffs, Boardera has introduced an Automated Tariff Calculation module to help users better understand and account for potential costs associated with electronic components. The tool helps save quoting teams time and effort by automatically identifying the correct tariff costs for each part, completing the calculations, and allowing the user to specify when a vendor has included tariffs in their price. This module cuts down the need for manual data processing, reduces the risk of error, and ensures your prices are always in line with the latest tariff updates and changes. Delivering faster quotes with accurate tariff calculations is achievable, with an automated pricing tool.
Mitigating PCB Tariff Risk with Diversification
With rising tariffs, it has become more important to diversify your supply chain and mitigate the risk associated with paying high tariff costs. With China contributing so heavily to the global electronic market, many EMS companies are naturally dependent on Chinese suppliers for their PCBs and components. This reliance now exposes businesses to financial risks as tariffs and trade policies continue to fluctuate. Without alternative suppliers in place, a dangerous bottleneck in the supply chain will be created where tariff costs or any other trade distributions could dramatically impact production costs and profitability.
A common strategy in supplier diversification is the 80/20 split, where assembly companies split their orders into 80% from one, primary source and 20% from another. This approach helps to reduce the chance of facing sharp increases in cost while allowing for flexibility to shift sourcing quantities around.
Managing supplier relationships effectively has become crucial in mitigating tariff impacts, and Boardera provides the necessary features for you to do so. The feature-rich Approved Vendor List gives companies access to a regularly updated, valuable curated list of approved global vendors. In addition to the relevant default list, users can also add and manage their own preferred vendors seamlessly. This flexibility allows users to set sourcing costs, landing factors, and additional lead times for each distributor, ensuring accurate pricing. The ability to instantly request PCB quotes and source components from a robust list of global suppliers is sure to help support supply chain diversification. It is essential to quickly adjust supply chain strategies in response to tariff changes and ensure production can be maintained without sacrificing cost-efficiency or quality.
Prepare Your CPQ Process
With fluctuating and volatile tariffs now in place, PCB assembly companies must adopt the necessary tools to stay ahead. Current challenges threaten established supply chains and will impact profit margins. Staying ahead is not just about managing costs, it's about leveraging the right tools to transform challenges into opportunities.
Boardera is at the forefront of this transformation, offering innovative solutions including the Automated Tariff Calculation and Approved Vendor List that will streamline your CPQ process while safeguarding your business against the unpredictability of trade policies. By automating the complex process of calculating the tariff cost of each part and managing vendors, you will be able to reduce operational overheads and minimize financial risk while maintaining competitive pricing.
Don't let tariffs have a negative impact on your company's success. Take advantage of Boardera's AI-powered solutions to navigate these challenges with confidence and efficiency.
Book a demo or visit Boardera to learn more.
Federal Register, Executive Order 14257, “Regulating Imports With a Reciprocal Tariff to Rectify Trade Practices,” Vol. 90, No. 65, April 7, 2025.
MaRCTech2, "Tariffs and PCBs: How Board Shark Overcomes the Impossible," March 9, 2025.