Computer & Peripheral Manufacturers NAICS 3341

May 5, 2025 - Some Electronic Products Exempted From Tariffs

• Some electronics products imported to the US have been exempted from President Trump’s reciprocal tariffs, according to US Customs and Border Protection. Profit margins of computer and peripheral manufacturers may be compressed if tariffs are applied to imported manufacturing inputs in the future. The exemption, which comes after the Trump administration imposed a minimum tariff rate of 145% on Chinese goods imported to the US, does not include the 20% tariff on Chinese goods for the country’s alleged role in the fentanyl trade. Computer monitors and various electronic parts are among the exempted products. The exemption applies to products entering the US or removed from warehouses as early as April 5.
• Global shipments of traditional PCs decreased 2.4% year-over-year to 68.8 million units during the third quarter of 2024, according to the International Data Corporation (IDC) Worldwide Quarterly Personal Computing Device Tracker. Factors including rising costs and inventory replenishment led to a surge in shipments in the previous quarter, resulting in a slightly slower sales cycle. New AI PCs and Apple’s M4-based Macs are expected to drive a premium segment increase in coming months, according to IDC.

• Computer and peripheral manufacturers benefiting from reshoring may also benefit from nearshoring, according to the Reshoring Initiative (RI). Harry Moser, founder of RI, says that if a product is so labor intensive that you can’t bring it to the US, then companies are sometimes surprised to find that wages in Mexico are far lower than in China. The average Mexican manufacturing worker earns $4 an hour, while the rate in China — where wages have been gaining 10% to 15% a year — is currently around $7, and in the US, it’s roughly $23. Products coming from Mexico end up with an average 40% US content, while in China they have 5% US content.
• Shipments of computer storage devices increased 1.4% year over year and 6.2% month over month in February 2025, according to the US Census Bureau. Computer and peripheral manufactures increased prices slightly during 2024, according to the US Bureau of Labor Statistics (BLS). Computer and peripheral manufacturing industry employment and wages for nonsupervisory employees increased slightly during the first four months of 2025, according to the BLS.