Dive into the electrifying world of electrical engineering with Circuit Break, a MacroFab podcast hosted by Parker Dillmann and Stephen Kraig. This dynamic duo, armed with practical experience and a palpable passion for tech, explores the latest innovations, industry news, and practical challenges in the field. From DIY project hurdles to deep dives with industry experts, Parker and Stephen's real-world insights provide an engaging learning experience that bridges theory and practice for engineers at any stage of their career.
Whether you're a student eager to grasp what the job market seeks, or an engineer keen to stay ahead in the fast-paced tech world, Circuit Break is your go-to. The hosts, alongside a vibrant community of engineers, makers, and leaders, dissect product evolutions, demystify the journey of tech from lab to market, and reverse engineer the processes behind groundbreaking advancements. Their candid discussions not only enlighten but also inspire listeners to explore the limitless possibilities within electrical engineering...
Recent article Decoding Tariff Impacts on US Electronics Manufacturing
What kind of items in the Tariff list will impact US Electronics Manufacturing?
Passives, actives excluding ICs and diodes, mechanical components like switches, connectors, etc
Assembled PCBs from China
Shouldn’t see a huge impact from LEDs
Short Term Impacts on the Market
Pricing on most things won’t increase until existing stock gets depleted from inventory at US warehouses
Initial impacts will be slightly increasing prices, potentially rapidly moving stock as buyers look to lock in current pricing
Overall, we’re predicting from about 2%-10% increase in COGS for most electronics produced in the US until all ICs are included, at which point the impact to COGS will increase dramatically
Long Term Impacts on the Market
We’ll see more assembly shifting away from US to places like Mexico which have lower tariffs on components between China and them, and little to no tariffs on final goods coming into the US
Flex has been downsizing their high margin/mid volume segment, laying off 10% of their workforce as demand for telecom and datacom equipment has dropped, and focusing on higher volume and lower margin builds in the US
Tariffs this is a boon for NAFTA, but not necessarily for US manufacturing
Impacts of Tariffs on the current Component Shortages
Expect the bidding to get hotter on high-volumes of short-supply passives, esp. w/ automotive ratings, and you’ll need to get closer to the manufacturers and other consumers in the supply chain to keep costs from ballooning on these line items
We are already seeing parts having gone up from half a cent to 10 cents on some high-demand capacitors at volume, this is before tariffs kick in
Overall, it’s not going to affect the availability of passives right now, as passives aren’t discretionary purchases, the increasing price won’t necessarily increase the supply in the short-term
Consumer goods?
No Tariffs on complete consumer goods yet
Will this hurt hobbyist/makers?
Those that are sourcing their goods from China, not really - de minimus for customs is $800, so if you’re importing less than $800 a time from an overseas vendor, these tax rates won’t impact you
Big issue is going to be around vendors who sell made-in-china boards (not final products), these companies are going to have a harder time covering the spread
Companies that make a lot of their goods in the US, like sparkfun, adafruit, etc. will have lower overall price increases, which will vary from product to product