Tariff Information

Letter to Customers

Our Valued Customers,

The tariffs announced by the Office of the United States Trade Representative (USTR) under the Section 301 Action took effect on July 6th, 2018, with additional products added on August 23rd, and potentially more in 2025. All items classified under the Harmonized Tariff Schedule of the United States (HTSUS) with China as the country of origin are subject to a 25% duty upon importation into the United States, increasing to 50% on specific parts starting in 2025. For more information, visit the China Section 301 - Tariff Actions and Exclusion Process site.

DigiKey is committed to minimizing the impact of these tariffs on our customers. We are collaborating with the ECIA (Electronic Component Industry Association) and our 3000+ suppliers to mitigate supply chain disruptions while complying with legal requirements. Due to our inventory position, parts originating from China will see an additional increase starting in 2025. DigiKey strives to provide the utmost transparency to our customers, and affected items will be clearly noted on all impacted invoices.

In response to customer requests, DigiKey is identifying tariff-impacted products in our website search results. The tariff applies only to products with specific HTS codes, with China listed as the country of origin, and consumed within the United States. There is no impact on pricing for products within DigiKey's stock shipped outside the United States.

To enhance transparency and simplify the purchasing process, tariffs will now be applied during checkout and invoicing. The tariff amount will appear as a separate line item in your cart and on your invoice.

This is a dynamic situation, and we will continue to monitor developments closely, exploring all avenues to minimize any impact or uncertainty in your designs or supply chain.

For any immediate questions not addressed in the FAQ, please contact us at tariffs@digikey.com

Thank You.

Dave Doherty
President & COO
DigiKey

Last Updated: April 21st, 2020

Frequently Asked Questions

Any immediate questions not answered in the FAQ can be sent to tariffs@digikey.com

What parts are impacted by the new tariffs?

Section 301 identifies product lines (based on HTS codes) that will be levied with an incremental 25% tariff: For more information visit the China Section 301 - Tariff Actions and Exclusion Process site. We currently do not have a complete list of part numbers available, however, under 15% of the current stocking SKUs offered from DigiKey are subject to tariffs.

How will the charge for the tariff be determined?

Our approach is designed to minimize impact to customers due to our strong inventory position. DigiKey has made the decision to charge a discounted flat tariff rate % to simplify the invoicing process and provide transparency to our customers related to the exact tariff fees being billed on their invoice.

Are the tariff charges already reflected in the price of the parts?

Tariffs will not be included in the resale price of our parts, but the tariff will be applied at the time of checkout or invoicing. The price of the tariff will appear as a separate line item in your cart and on your invoice.

How does the tariff impact DK customers doing business outside of the US?

The Section 301 tariffs are not applicable for products being delivered outside of the United States. DigiKey will not charge Section 301 tariffs on products delivered outside the United States.

How will DigiKey's quoting process address tariffs?

Our approach is to clearly identify parts that are subject to tariffs at the time of quote.

Are part lead times and availability impacted?

Due to our current inventory position, there is no change in lead time or availability at this time due to tariffs.

How is DigiKey handling drawback requests from customers?

Duty drawback is a process in which an entity in the US, subject to the tariff, can apply to recoup the duty paid if the product is subsequently exported in its original form without any value-added processes performed to it. We are still in the process of gathering all the pertinent information from our suppliers and government agencies to review how duty drawbacks could be processed for customers, where applicable.

How do I know a part is affected by the tariff?

Parts will be identified with a message box reading "Import Tariff may apply to this part if shipping to the United States".

Can you provide my company with alternate devices not affected by Section 301 tariffs?

Yes, with our diverse line card and support teams, we can provide your company with alternative solutions. We can redirect you to another approved vendor list (AVL) part to fulfill your needs. For your future designs, DigiKey is able to provide full and turnkey design capabilities that can drive your innovation.

Will DigiKey accept customer cancellations of NCNR orders due to the tariff?

No, the NCNR must be enforced. DigiKey is only administering the tariff that is imposed upon us and is unable to modify this condition of sale.

What is the industry outlook for tariff-related issues?

We are a member of various industry groups and trade associations that indicate common themes across the issues, similar to those addressed in this FAQ. As an example, DigiKey is currently working with the Electronic Component Industry Association (ECIA) lobby for the exclusion of electronic components from the Section 301 list. We share a similar position within our industry representing the need for:

  • A strong cooperation from suppliers to identify the impact on the affected parts
  • A flexible solution for customers that does not adversely affect the component supply chain
Last Updated: April 21st, 2020