#USElectronicsTariffs In a bid to safeguard the US semiconductor industry, which dominates global revenue (40%) but lags in domestic production (8%), the US government has doubled tariffs on Chinese semiconductors from 25% to 50%, effective May 14, 2024. This move may have significant implications, including:

1. *Higher Costs*: Increased material expenses for hardware engineers and product designers.

2. *Supply Chain Disruptions*: Reduced inventory and longer lead times.

3. *Design Overhauls*: Companies might need to redesign products to incorporate components from other countries.

Affected products include semiconductors, diodes, transistors and electronic components.

To minimize the impact, businesses can:

1. *Diversify suppliers*: Explore alternatives beyond China.

2. *Optimize designs*: Cut costs without sacrificing performance.

3. *Partner with manufacturers*: Collaborate to navigate tariffs effectively.

The tariffs could raise bill of material costs by 1.72% on average.