Issue link: https://iconnect007.uberflip.com/i/1544707
16 SMT007 MAGAZINE I MAY 2026 include copper and hundreds of "derivative" prod- ucts: Goods that contain these metals but aren't raw metal themselves, such as cables, transformers, connectors, enclosures, and circuit board materials. Under the old rules, importers of derivative prod- ucts paid tariffs only on the metal content portion of the product's value. That meant if you imported a cable harness worth $100 and the copper inside it accounted for $30 of that value, you paid the tariff on $30. It was complicated to calculate, but for many electronics importers, it kept the duty bill manageable. That system is gone. Full Value, Full Impact The new proclamation eliminates the metal- content methodology entirely. Now, Section 232 duties apply to the full customs value of the imported product. That same $100 cable harness? The 25% tariff now applies to the full $100, not just the $30 of copper. For products where the metal is a relatively small share of total value, which describes a lot of electronics, this is a significant increase in duty exposure. The administration has organized covered prod- ucts into a tiered structure. Primary metals and closely related articles are subject to a 50% tariff. A large category of downstream derivatives, includ- ing many electronics components, falls under a 25% rate. A temporary category of metal-intensive industrial and electrical grid equipment is eligible for a reduced 15% rate through Dec. 31, 2027, be- fore stepping up to 25%. So, What's Actually Affected? For the SMT and EMS worlds, the new tariff lists capture a surprisingly broad range of products that move through electronics assembly operations every day: • Wire, cable, and harnesses. Insulated con- ductors (the copper and aluminum wiring that connects everything) are now squarely in scope at 25% on full value. This includes everything from winding wire used in coil assemblies to finished cable harnesses with connectors. • Transformers and power conversion. Both liquid-filled and dry-type transformers are covered at 25%. Power supply printed cir- cuit assemblies, ferrite cores, and inductor components are on the temporary 15% list through 2027, a meaningful but time-limited reprieve. • Connectors, switches, and enclosures. A wide swath of switching and connection devices, terminal blocks, boards, panels, and control cabinets now draw 25% on full value. • Copper foil and clad laminates. This is the upstream gut punch. Copper foils and cop- per-clad laminates, foundational inputs for PCB fabrication, face the top-tier 50% rate with no de minimis escape. That cost pres- sure will flow through to laminate pricing across the industry. The 15% Weight Escape Hatch There is one important relief valve. For derivative products classified outside the primary metal chap- ters of the tariff schedule, which includes most elec- tronics, Section 232 duties apply only if the covered metal accounts for at least 15% of the product's total weight. If the product falls below that threshold, the tariff doesn't apply. This matters for mixed-material electronic assem- blies. A data cable with lightweight copper con- ductors wrapped in heavy polymer jacketing might qualify. A printed circuit assembly where the FR-4 substrate dominates the weight could also clear the bar, but it's not likely for a power harness with heavy-gauge copper. The catch is that you need to prove it. Import- ers claiming this exemption should expect scrutiny from U.S. Customs and Border Protection, includ- ing requests for a bill of materials and detailed weight breakdowns. Supply Chain Tremors Ahead These changes will reshape sourcing decisions. Electronics supply chains have been diversify- ing toward Southeast Asia and Mexico for years, driven by the China Plus One strategy. But Section 232 tariffs apply on a most-favored-nation basis. Unlike the China-specific Section 301 tariffs, these tariffs generally apply to imports regardless of origin. Moving production to Vietnam or Thailand doesn't sidestep Section 232.