Newark’s Approach to Tariff Recovery
Newark must pay tariffs upfront at importation or pay our suppliers on very short terms. Where we have been charged for tariffs, we are recovering the costs. Tariff decisions made by suppliers are represented in our billing rates, and we are cognizant of the fact that these changes are apparent in our customers’ purchasing prices.
As this dynamic situation continues to develop, Newark is doing everything possible to minimize the impact of tariffs for our customers while adhering to the law. Various mitigation avenues are being considered and more information will be available once we have evaluated all options.
As part of Newark’s tariff strategy, we are committed to collaborating across our value chain on solutions that comply with the latest outcomes of U.S. - China trade matters. Our intent is to address this complex and fluid environment in a manner that promotes supply chain security and risk mitigation while minimizing business impact.
Newark’s mitigation solutions for tariffs enacted by the U.S. government for specific goods imported into the U.S. apply to the following types of tariffs:
- Section 301 China tariffs issued by the United States Trade Representative (USTR) under provisions of the Trade Act of 1974. These tariffs apply only to specified product commodities. Implementation: 2018 – 2026. (source)
- International Emergency Economic Powers Act (IEEPA) tariffs issued against goods of Chinese, Mexican, or Canadian origin. Unlike Section 301 tariffs, which apply to select commodities, the current IEEPA tariffs apply to all virtually all product commodities. Implementation: 2025. (sources: Chinese IEEPA tariffs, Mexican IEEPA tariffs, Canadian IEEPA tariffs)
- Section 232 tariffs on the imports of copper, steel and aluminum from any country under provisions of the Trade Expansion Act of 1962. Implementation: 2025. (sources: Copper tariffs, Steel tariffs, Aluminum tariffs)
- Reciprocal tariffs under the authority of the International Emergency Economic Powers Act (IEEPA) on all international products shipped into the U.S. Implementation: 2025. (source)
Information Sections:
Newark will continue to monitor the US government’s tariffs, along with their impact on our supply chain. The steps Newark is taking as a result of the tariff changes include:
- Collaborate with suppliers to mitigate impacts of tariffs so we can minimize the effect to your business. Our team is working closely with our suppliers to understand impacted product identification, alternative COO product potentials and the necessary information systems to provide COO information as early in the quoting process as possible.
- Invoicing: Quoted prices as well as prices shown on Newark’s invoices will continue to be inclusive of tariff duties as they have in the past.
- Offer our customers tariff free product/solution alternatives. With one of the industry’s' most comprehensive electronics manufacturer portfolios, Newark ships more than 30,000 line items per day and 117 billion units every year.
Let’s collaborate so our experts can help you avoid tariffs altogether by reviewing your Bill of Materials (BOM) and providing you with tariff free products from Newark’s diverse line card. We can redirect your company to another Approved Vendor List (AVL) product and utilize our vast inventory in different global regions to fulfill your needs.
Frequently Asked Questions
Q: What is Newark’s approach for calculating tariff changes?
A: Newark is billing customers at a percentage that represents the pricing decisions of our suppliers and equitably passes these charges along. We are currently working to minimize the impact of these tariffs wherever possible while adhering to the law.
Q: When will Newark begin/end billing customers for the incremental tariff change?
A: Currently, the tariffs are being factored into Newark’s pricing system. Newark will continue to closely monitor the situation for future updates.
Q: Are part lead times and availability impacted?
A: Lead time and availability have not been impacted by tariffs at this time.
Q: Which tariffs are the most impactful on Newark’s products?
A: Many Newark products have been impacted by tariffs at this point, but the most consequential tariffs for Newark’s customers include:
- The Jan 1, 2025, Section 301 50% tariff on semiconductors which include diodes, transistors, IC's, thyristors, triacs, opto-electronics, and sensors
- The Mar 4, 2025, IEEPA 20% tariff on all goods of Chinese origin
- The Mar 4, 2025, IEEPA 25% tariff on all goods of Mexican origin
- The Mar 4, 2025, IEEPA 35% tariff on all goods of Canadian origin
- The Apr 2, 2025 Reciprocal tariffs on all goods except of Mexican or Canadian origin. As of Aug 7, 2025 tariff rates range from 10% to 41%. Some commodities such as semiconductors and computers are exempt for all country of origins.
- The 2025 Section 232 50% tariffs on the imports of copper, steel, and aluminum from any country under provisions of the Trade Expansion Act of 1962 (sources: copper tariffs, steel tariffs, and aluminum tariffs).
If you have any questions on our invoicing process, please contact your Newark representative.