How the 170% China Import Tariff Impacts Your Power Supply Supply Chain

Key Takeaways from TRC Electronics’ Latest Tariff Update Webinar

The electronics supply chain is undergoing one of its most disruptive phases in recent history—and TRC Electronics is leading the charge to keep engineering and purchasing professionals informed, prepared, and protected.

On April 29th, 2025, TRC Electronics hosted a live webinar to answer the growing number of questions from manufacturers navigating skyrocketing tariffs and unstable sourcing conditions. The session was led by TRC’s President, Stephen Lagomarsino, who has been at the forefront of power supply distribution since 1998.

If you missed the live broadcast, here’s a quick recap of the biggest takeaways from the session—and why this information matters to your business.

Tariffs Have Hit 170%—Here’s Why

The highlight of the webinar was a breakdown of how U.S. import tariffs on China-manufactured power conversion components have surged to 170%. Many businesses are still under the impression that the rate is 145%, but Stephen walked attendees through the math:

• 25% from Section 301 (established in 2018)

• 10% + 10% from new IEPA tariffs

• 34% reciprocal tariff announced on “Liberation Day”

• An additional 50% added as retaliation

• Final bump to 170% on April 9, 2025

Foreign Trade Zones Are a Game-Changer

To stay competitive, TRC Electronics converted its warehouse into a Foreign Trade Zone (FTZ)—a move that now gives its customers a major advantage. Products brought into the FTZ are not taxed until shipped to the customer, improving cash flow and allowing TRC to delay the tariff payment until the sale happens.

💡 Key Insight: Distributors without an FTZ will struggle with cash flow and may require less favorable payment terms to cover the cash flow challenges.

Supply Chain Disruptions Are Brewing

Stephen also warned that the financial burden isn’t the only concern—massive supply chain disruptions are on the horizon:

• Cargo shipments from China have plummeted by 60%

• Ocean freight carriers have cut sailings by 60%, surpassing even COVID-era reductions

• A sudden trade resolution could trigger a surge in orders, overwhelming logistics networks not built for "stop-and-go" recovery

What Should You Be Doing Now?

• Assess your current sourcing risks
  TRC is offering a Free Power Supply Risk Assessment to help you identify non-China alternatives.

• Monitor country of origin closely
  TRC’s website now shows known country of origin data on product pages and category filters.

• Stay transparent with your stakeholders
  TRC uses consistent and transparent formulas to pass through tariff costs based on actual batch-level import data.

FAQ Highlights from the Webinar

• Are there any power supplies not subject to China tariffs?
  Only U.S.-made brands like Integrated Power Designs (IPD). Everything else has some level of tariff.

• Are manufacturers moving production?
  Yes. Suppliers like MEAN WELL are actively shifting production to India, the Philippines, and Taiwan—but final decisions hinge on trade deals.

Final Thoughts

Stephen wrapped up the webinar with this important reminder:

“Where there’s confusion, there’s failure. Our mission is to give you the power to succeed—with clear facts, transparent pricing, and proactive planning.”

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Let’s navigate this together—so your operations stay strong, compliant, and competitive in 2025.