“OEMs sourcing from China are now budgeting six to seven figures annually in unexpected tariff costs.”
-AP News
The China Tariffs Impact
OEMs are seeing landed costs rise by 20–40% on critical hardware due to new tariffs on Chinese imports.
Tariff Disruptions for OEMs
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Tariffs on Chinese goods
→ OEMs now face up to +145% import duties, driving up component costs overnight.
Quote instability
→ Chinese suppliers are issuing pricing valid for less than 7 days, making it hard to lock in costs.
Sourcing delays
→ Average lead times from China have stretched to 6–10 weeks, causing production slowdowns.
BOM-level cost impact
→ Mid-size OEMs are absorbing $100K to $500K+ per year in added tariff-related expenses.
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