Where We are, What We’ve Done, and Where We’re Going

Dec 19

In order to understand where we are in the various phases of the evolution of tariffs in America, it well serves our purpose to assess the current situation first. To guide us we borrow a widely employed triptych and remix it slightly: As Americans, with regard to tariffs, let us consider, “Where we are, what we’ve done, and where we’re going.” That is to say we’ve shuffled the tariff timeline into the order of present, past, and future. We’ll begin an analysis of our situation today as citizens of one country in a world of 193 countries (in the United Nations) with uni-, bi-, and multilateral trade relationships.

That’s a lot of trade relationships. So let’s focus on the eight largest trading partners for the U.S. The top U.S. trading partners in goods in 2024 were the E.U., Mexico, Canada, China, Japan, South Korea, Taiwan, and Vietnam. Combining imports and exports, the European Union traded nearly one trillion in U.S. dollars ($1T), Mexico just over $800 Billion, Canada just under $800B, China just under $600B, Japan just over $200B, and South Korea, Taiwan, and Vietnam all under $200B.

Even for this dominant group of eight, that really is a lot of potential trade relationships. Despite the long-standing wave of globalization, regional relationships are still used to group, protect, and encourage trade. The European Union is a prime example of trade and monetary union between independent nations. The U.S., Mexico, and Canada have been grouped under trade agreements starting with NAFTA (North American Free Trade Agreement). This was later replaced by USMCA, the U.S.-Mexico-Canada Agreement. Japan, South Korea, Tawain, and Vietnam can be grouped in a few different ways, often with Japan standing alone with regards to the U.S. And China is certainly worthy of being ungrouped and standing alone.

To describe the trade relationships between nine countries (eight trading partners and the U.S.) we should define some terms. Tariffs, and exemptions from them, come in different forms with different terms applying to them. Three of the most important terms to understand are ad valorem, specific, and de minimis. Tariffs that are specific are calculated as a constant value multiplied by weight. Ad valorem tariffs are based on a percentage of the unit cost. And the de minimis rule is an exemption of duties based on a maximum value.

Specific tariffs based on weight were part of the reason that the infamous Smoot-Hawley tariffs bit so hard in the early 20th century. Ad valorem tariffs are what are mostly used today with the exception of bulk items such as steel and aluminum which are specific. Today ad valorem tariffs are often being placed on the goods from a country, as a whole, as opposed to the more complex way that tariffs were applied in the past, not just on individual goods from a specific country but also on the individual components that made up those goods. In this regard, the production, protection, and taxing of wool in the U.S. 19th century is probably the best case-study of just how complex the specification of tariff schedules can become.

We’ll start with the exemption of duties by the de minimis rule, since it has a significant influence on how electronic components are shipped. Electronic components that are shipped across the world often avoid tariffs by either utilizing the de minimis rule or by using intermediary countries for initial export to avoid tariffs. So it is informative to see what happened when the de minimis loophole was closed.

On April 2nd of 2025, President Donald J. Trump signed an Executive Order, which took effect on May 2nd of 2025, closing a loophole for low-value imports from the People’s Republic of China (PRC) and Hong Kong. The
de minimus rule allows for duty-free imports of goods that are valued at less than $800. How “goods” are defined is fuzzy. A precision resistor valued at ten cents is probably covered by de minimis. Is a spool of 10,000 of those resistors also covered under de minimis? How about a shipping container of 1,000 of those spools?

Once de minimis for China was ended at the beginning of May, China’s exports of low-value packages to the U.S. dropped by more than $1B in the following weeks. Not just coincidentally, the same trade to the
E.U. increased by nearly three quarters of $1B in roughly the same time period. Taxes can certainly form strong incentives or disincentives for trade between countries. Human ingenuity, however, is always there to figure out ways around (or through) those governmental authorities at the ports, often legally, and always considered as to the advantage of those conducting the trade.

What do you think about companies avoiding tariffs? Does that help lower costs for consumers? Should it be allowed in some cases? Let us know at INFO@MICRONCORP.COM. After that, we’ll see you next time on TAXING TARIFFS.

Welcome to Taxing Tariffs!

Dec 10
Micron Insight Series

Taxing Tariffs

Taxing Tariffs and a Folding Trump Card: How will the Supreme Court and China respond?

Tariffs & Trade Policy History & Context Manufacturing Perspective
We Build It Better
Series Intro
Video

Watch the opening episode of Taxing Tariffs as we connect early American tariff debates to the modern questions facing the Supreme Court, China, and U.S. manufacturers.

Welcome to Taxing Tariffs!

Welcome to Taxing Tariffs! Or as I like to word it “Taxing Tariffs and a Folding Trump Card: How will the Supreme Court and China Respond?”

Before we lean into those current pressing questions about tariffs, let’s glance back at the history of tariffs on this side of the Atlantic.

Remember Taxing Tariffs is brought to you by Micron Corporation where “We Build It Better.”

Long before the current set of leaders and national conditions, there existed much heated debate about tariffs in these not so United States.

Long before the current set of leaders and national conditions, there existed much heated debate about tariffs in these not so United States. Agricultural and industrial interests, mostly divided between the South and the North, though both often politically driven by the West, conflicted on the subject of taxation. None other than Thomas Jefferson and Alexander Hamilton eloquently debated the varying positions that states held on schedules of taxes collectively known as tariffs. And that was in 1791.

America has been steeped in and indeed began by “opting out of” tariffs since before its beginning, so let’s state what tariffs are. Tariffs are duties on imports that are paid at the ports and docks, and if passed on to consumers they become taxes on individuals. In the nascent States this was well understood. To hear politicians speak today, one would think that tariffs are only placed on other nations: a tariff on China, a tariff on Canadian imports, a tariff on Mexican auto parts. U.S. tariffs are paid by U.S. corporate entities and U.S. citizens, period.

Do you feel any price pain due to tariffs? Do you think there’s still a divide in this country on the topic of tariffs? Let us know @MICRONCORP.COM. After that, we’ll see you next time on TAXING TARIFFS.

Micron We Build It Better
Part of the Taxing Tariffs series from Micron Corporation.
Taxing Tariffs: An Insight Series by Micron Corporation discusses Tariffs & Trade Policy, the History and Context of Tariffs, and a Manufacturing Perspective from an EMS company.

Preparing for Supply Chain Disruptions: How an Agile EMS Partner Makes the Difference

Nov 11

By Micron Corporation •

In today’s volatile global landscape, supply chain disruptions have become more than just an occasional challenge — they’re the new normal. For OEMs and product developers, that means timelines, budgets, and customer commitments are all on the line when a single supplier or shipping lane falters.

As we move through the final quarter of 2025, many manufacturers are asking the same question: How do we protect our production schedules and ensure we can still deliver? The answer lies in partnering with an agile, responsive, and domestically grounded Electronics Manufacturing Services (EMS) provider.

At Micron Corporation, we’ve built our operations around that exact philosophy — anticipating disruption and designing flexibility into every stage of manufacturing.

The Supply Chain Reality in Late 2025

Even as the global economy steadies post-pandemic, volatility continues to define electronics manufacturing. Component shortages remain an issue in key categories — semiconductors, passives, connectors — as demand from AI, IoT, and EV sectors outpaces supply.

At the same time, geopolitical tensions, logistics constraints, and material price fluctuations continue to challenge even the most carefully planned programs. For OEMs, the ripple effects include:

  • Extended lead times for critical components.
  • Higher costs from expedited shipping or broker sourcing.
  • Unexpected design changes when parts go obsolete mid-project.
  • Missed deadlines that can jeopardize product launches and client trust.

In short, the margin for error has disappeared. The manufacturers that continue to deliver are the ones that can pivot quickly — often with the help of a flexible, well-connected EMS partner.

What “Agility” Really Means in Electronics Manufacturing

Agility isn’t a buzzword — it’s a measurable capability. In our world, an agile EMS partner is one that can:

  1. Adapt production schedules quickly — shifting from prototype to volume, or from one product family to another, without weeks of downtime.
  2. Source components from multiple vetted suppliers, reducing dependence on single-region availability.
  3. Communicate transparently when risks emerge, so OEMs have real-time insight into potential impacts.
  4. Operate domestically, reducing the uncertainty that comes with overseas shipping and customs delays.

At Micron Corporation, this mindset informs everything we do. Our U.S.-based facility in Norwood, Massachusetts is designed for fast response, short production runs, and seamless transitions — whether the project involves Surface Mount, Through Hole, or mixed-technology assemblies.

How Micron Corporation Builds Resilience Into Every Project

  • Supplier diversification: Relationships with multiple distributors and manufacturers for key components ensure qualified alternatives are ready when shortages arise.
  • Early design engagement: Our engineering team collaborates during design to flag at-risk parts and propose footprint-compatible substitutes.
  • Material forecasting: Continuous lead-time analysis enables proactive purchasing of long-lead items.
  • Flexible production capability: Lines and teams are optimized for quick changeovers — minimizing setup loss between products.
  • Transparent communication: Timely updates on supply conditions, allocation risks, and recommended mitigations.

Best Practices for OEMs: Staying Ahead of the Next Disruption

  • Qualify multiple sources early. Build alternates into your AVL and BOM.
  • Plan hybrid inventory models. Blend Just-In-Time with strategic stocking for critical assemblies.
  • Collaborate continuously. Share forecasts and design revisions early to avoid last-minute rework.
  • Prioritize local manufacturing. Domestic builds shorten transit times and reduce geopolitical exposure.
  • Review supply risks quarterly. Conditions change fast — keep mitigation plans current.

What to Ask When Evaluating an EMS Partner

  • What is your sourcing footprint — and do you have multiple suppliers for each key component category?
  • How do you handle sudden lead-time extensions or allocation events?
  • Can you adjust production volumes quickly to meet changing demand?
  • What visibility do you provide into supply chain performance and material status?
  • How do you support Through Hole and mixed-technology assemblies under dynamic scheduling conditions?

Looking Ahead to Q4 and Beyond

As 2025 closes, industry signals suggest the first half of 2026 may bring renewed constraints driven by AI hardware and power electronics. Add election-year trade adjustments, transportation cost fluctuations, and ongoing regional conflicts, and it’s clear that uncertainty isn’t leaving anytime soon.

The key is early engagement and proactive planning. The earlier you involve your EMS partner, the more options exist for alternate sourcing, design flexibility, and production timing. Micron Corporation is helping customers with dual-sourced components, dynamic lot scheduling, and flexible Through Hole production — providing confidence heading into the next quarter and beyond.

Conclusion: Turning Risk Into Readiness

Supply chain disruptions will continue to test manufacturers. With the right partner, those challenges become opportunities to strengthen processes, streamline communication, and accelerate innovation.

At Micron Corporation, our commitment to agility, transparency, and U.S.-based manufacturing helps customers keep building, shipping, and growing — no matter what happens globally.

Contact Us for a Readiness Review

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