Updates on United States tariff policies
Due to the current tariff environment customers may experience unexpected pricing adjustments. DigiKey remains committed to minimizing the impact on our customers by leveraging supply chain strategies, including minimized tariff pass-through, as well as utilizing our Foreign Trade Zone (FTZ) and drawback programs.
March 17, 2026 - IEEPA Duty Refund Process – CAPE System Development Update
U.S. Customs and Border Protection (CBP) is developing a new system called CAPE, a web‑based portal designed to manage the refund process for duties assessed under the International Emergency Economic Powers Act (IEEPA). Once released, CAPE will appear as a new tab in both importer and broker ACE Portal accounts and will serve as the central platform for submitting and tracking refund requests ("CAPE Declarations"). CAPE consists of four major components, Claim Portal, Mass Processing, Review & Liquidation/Reliquidation, and Refund, each of which is in a different stage of development.
The Claim Portal, currently about 70% complete, will allow importers and brokers to upload CSV files listing the entries for which they are seeking IEEPA duty refunds. CAPE will run two layers of automated validations. First, file‑level checks ensure proper formatting, submission by the correct Importer of Record or authorized broker, and file integrity. Submissions with errors will be rejected with detailed feedback for correction. Second, entry‑level validations confirm that each Entry Summary exists in ACE and includes at least one applicable IEEPA HTSUS Chapter 99 number. Invalid entries will be removed from the claim, but valid entries will continue through processing.
The Mass Processing component, roughly 40% complete, will automatically recalculate duties by removing IEEPA-related HTSUS numbers from the validated entries. ACE will then rerun its standard duty calculation checks as if the IEEPA duties had never applied. Once these recalculations are complete, the CAPE Declaration is considered accepted for further processing.
Following acceptance, the Review & Liquidation/Reliquidation component, currently 80% complete, will schedule entries for liquidation or reliquidation a set number of days after acceptance. This window allows CBP time to conduct manual review when necessary. During liquidation/reliquidation, CAPE will update Entry Summaries with adjusted duty amounts and automatically calculate any interest owed. Processing of liquidations and reliquidations will occur Monday through Thursday each week.
Finally, the Refund component, which is 60% complete, will direct liquidated/reliquidated entries into a CAPE‑specific refund workflow within the ACE Collections module. Refunds will be consolidated by date and Importer of Record and issued electronically to the designated bank account. CBP is currently testing this consolidation process to ensure stability and accuracy.
CBP has indicated that CAPE will roll out in phases, beginning with most formal and informal entries that paid IEEPA duties. Certain categories, such as entries tied to AD/CVD, entries in suspended or extended liquidation status, warehouse withdrawals, and entries included in drawback claims will be excluded from the initial phase. CBP plans to publish detailed guidance for each implementation phase as functionality becomes available. Because significant portions of the system are still being developed and will be introduced gradually, refund timelines may vary, and some claims may not be eligible for submission until later phases are released.
February 20, 2026 - U.S. Supreme Court Ruling on IEEPA Tariffs
- Reciprocal and Fentanyl tariffs imposed under IEEPA exceeded administration’s authority.
- POTUS issued an update to Executive Order ending Reciprocal and Fentanyl tariffs, all other section 301 and 232 tariffs would remain in effect.
- CBP issued CSMS guidance for ending collection of Reciprocal and Fentanyl tariffs effective 12:00 a.m. EST on February 24, 2026.
- POTUS issued an Executive Order imposing temporary Section 122 tariff of 10% on all imports into the United States for 150 days effective 12:00 a.m. EST on February 24, 2026.
- See: Ending Certain Tariff Actions – The White House
- See: CSMS # 67834313 - Ending Collection of International Emergency Economic Powers Act Duties
- See: Fact Sheet: President Donald J. Trump Imposes a Temporary Import Duty to Address Fundamental International Payment Problems – The White House
April 2, 2025 - Executive Order: General Import Tariff Announced
- A 10% tariff was imposed on all imported products into the United States.
- This rate went into effect on April 5, 2025, at 12:01 a.m.
- See: Executive Order on April 2 Tariff Announcement - The White House
April 8, 2025 - PRC Reciprocal Tariff Increase
- The People's Republic of China (PRC) responded to U.S. tariffs with a 34% tariff on U.S. exports.
- The U.S. issued a notice threatening further escalation if China did not reverse its action.
- Later that day, the U.S. amended the Executive Order, raising tariffs on China-origin goods from 34% to 84%, a 50% increase.
- See: Amendment to Reciprocal Tariffs and Updated Duties as Applied to Low-Value Imports from the People's Republic of China - The White House
April 9, 2025 - Country-Specific Tariffs Implemented
- Country-specific tariff rates for 60 countries were implemented, as listed in Annex I of the Executive Order.
- Annex II details 8-digit Harmonized Tariff Codes that are exempt from the new rates.
- Annex III, published shortly after, outlines:
- Chapter 99 ad valorem codes subject to the new tariffs.
- Exemption codes for goods already in transit between April 5 and April 9.
- See: Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits - The White House
April 9, 2025 - Escalation of China-Specific Tariffs
- The U.S. imposed a 125% tariff on goods from China, in response to China's matching increase to 84%.
- Simultaneously, the U.S. paused reciprocal tariff increases for all countries except China, Mexico, and Canada, capping their rates at 10% for 90 days while negotiations continue.
- See: USTR Announcement on April 9 Actions
Ongoing Tariff Measures (As of April 2025)
- February 2025 tariffs remain in effect:
- 20% tariff on all China-origin goods under IEEPA.
- 25% tariff on goods from Canada and Mexico.
- All Section 301 tariffs on China-origin goods continue unchanged.
- See: Fact Sheet: President Donald J. Trump Imposes Tariffs on Imports from Canada, Mexico and China - The White House
May 14, 2025 - Executive Order: Modifying Reciprocal Tariffs
(Published May 12, 2025)
- The U.S. modified tariffs in response to discussions with the People's Republic of China (PRC).
- PRC tariffs were reduced from 125% to 34%.
- PRC tariffs are paused for 90 days, with a 10% interim rate during that period.
- All other tariffs affected by the agreement are also paused for 90 days.
- See: Executive Order on Modifying Reciprocal Tariff Rates - The White House
- See: Extending the Modification of the Reciprocal Tariff Rates - The White House
June 3, 2025 - Executive Order: Section 232 Tariffs on Steel and Aluminum
(Published June 3, 2025, Effective June 4, 2025)
- Steel and aluminum tariffs increased from 25% to 50%.
- The United Kingdom remains at the 25% tariff level.
- See: Fact Sheet on Section 232 Tariff Increases - The White House
July 28, 2025 - EU Reciprocal Tariffs Adjustment
- EU reciprocal tariffs were reduced from 30% to 15%, effective August 1, 2025.
- See: Fact Sheet on U.S.-EU Trade Deal - The White House
August 1, 2025 - Copper Tariffs Announced
- A new copper tariff goes into effect.
- Originally announced via Truth Social
- See: Copper Tariff Announcement - Truth Social
What is DigiKey doing about tariffs?
DigiKey is actively engaged in discussions with our suppliers and industry tariff experts to understand how we can mitigate the impact these tariffs have on our customers. As such, DigiKey will continue to monitor and adapt to evolving changes which will best position DigiKey to continue to provide high-quality products at cost-effective pricing.
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Frequently asked questions
Why did I receive a Tariff Charge?
You received a Tariff product on your United States shipment.
DigiKey does not have qualifying documentation exempting you from Tariff charges.
Why did I receive a Tariff charge on this Invoice but not a previous Invoice?
A previous Invoice may not have contained a qualified Tariff product.
I have a Tax Exempt document, why am I being charged Tariff?
Tax Exemptions are State Tax documents that do not apply to Federal Tariff charges.
What products are impacted by the new tariffs?
On April 2, 2025, the President of the United States issued an Executive Order imposing a 10% tariff on all products imported into the United States. This new tariff rate will take effect on April 5, 2025, at 12:01 AM.
In addition, country-specific tariff rates for 60 countries will take effect on April 9, 2025, as outlined in Annex I of the Executive Order. On April 8, 2025, an amended Executive Order increased the rate for the People's Republic of China from 34% to 84%.
Annex II of the Executive Order identifies 8-digit Harmonized Tariff Codes that are exempt from these increased rates.
Annex III, published shortly after, outlines the ad valorem Chapter 99 codes to which the new tariff rates will apply, as well as the Chapter 99 exemption HTS codes for products already loaded onto final mode of transport between April 5 and April 9.
Tariff rates enacted in February remain in effect, including:
- A 20% tariff on goods of Chinese origin under IEEPA
- A 25% tariff on goods originating from Canada and Mexico
- Existing Section 301 tariffs on goods from China
When should customers expect to see price decreases from the repeal of IEEPA tariffs?
DigiKey has already started the process of updating customer pricing taking into consideration recent announcements on SCOTUS IEEPA Ruling and new Section 122 tariffs.
Will I receive a refund for IEEPA tariffs previously paid?
At this time, refunds are not confirmed. The U.S. government has not yet issued instructions authorizing refunds of IEEPA tariffs already collected.
If refunds are approved, how would they work?
Refunds would be processed by U.S. Customs and Border Protection, typically through post-entry corrections, protests, or other CBP-directed mechanisms.
Can you issue a credit now?
No. Tariffs are government-imposed charges collected at entry. Credits can only be issued if CBP refunds the duties
| Tariff Type | Applicable Countries | Rate | Effective Date | Notes |
|---|---|---|---|---|
| General Tariff | All countries | 10% | April 5, 2025 | Imposed via Executive Order on April 2, 2025 |
| Country-Specific Tariff Adjustments | 60 specific countries | Varies by country | July 8, 2025 | Country-specific rates listed in Annex I of the Executive Order |
| Country-Specific Tariff Adjustments - Amendment | China | Varies by country | April 9, 2025 | Updated in response to China’s 84% increase on U.S. exports |
| Exemptions (Annex II) | All (based on product codes) | 0% | April 5, 2025 | Products with certain 8-digit HTS codes are exempt from increased rates |
| IEEPA Tariff on China Origin Goods | China | 20% | February 2025 | Still in effect, in addition to new general tariff |
| Tariff on Canada & Mexico Origin Goods | Canada, Mexico | 25% | February 2025 | Still in effect, in addition to new general tariff |
| Section 301 Tariffs on China | China | Varies by product category | Ongoing (since 2018) | Applies to certain categories of Chinese goods |
| IEEPA Tariffs (Reciprocal & Fentanyl) Ended | All countries | 10% - 40% | February 24, 2026 | Result of U.S. Supreme Court Ruling, February 20, 2026 |
| Section 122 Tariffs - New | All countries | 10% | February 24, 2026 | https://www.whitehouse.gov/presidential-actions/2026/02/ending-certain-tariff-actions/ |
How does USMCA affect tariffs?
Effective on or after March 7, 2025, goods entered for consumption or withdrawn from warehouse for consumption from Canada or Mexico that qualify for the USMCA preference are not subject to the additional tariffs under the IEEPA.
Additional Resources
- Electronic Components Industry Association (ECIA)
- Federal Register Announcement on Tariffs
- Exclusion Procedure
- Tariff Drawback information
- Customs and Border Protection (CBP) Guidance
- HTS Codes
- Imposing Duties to Address the Situation at Our Southern Border - The White House
- Imposing Duties to Address the Synthetic Opioid Supply Chain in the People's Republic of China - The White House
- Fact Sheet: President Donald J. Trump Imposes Tariffs on Imports from Canada, Mexico and China - The White House
- Imposing Duties to Address the Flow of Illicit Drugs Across Our Northern Border - The White House
- CSMS # 63988468 - GUIDANCE: Additional Duties on Imports from China
- CSMS # 63988467 - GUIDANCE: Additional Duties on Imports from Canada
- CSMS # 63991510 - GUIDANCE: Pause on Application of Additional Duties on Imports from Canada
- President Donald Trump agrees to pause Tariffs on Mexico and Canada | AP News
- Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits
- Amendment to Reciprocal Tariffs and Updated Duties as Applied to Low-Value Imports from the People's Republic of China
- 2/3/25, Source: Truth Social (Truth Details | Truth Social)
- Extending the Modification of the Reciprocal Tariff Rates - The White House
- Fact Sheet: President Donald J. Trump Increases Section 232 Tariffs on Steel and Aluminum - The White House
- Fact Sheet: The United States and European Union Reach Massive Trade Deal - The White House
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