Section 122 (15% surcharge) applies to most non-USMCA electronics imports through July 24, 2026. China-origin electronics also pay Section 301 stacked on top – making the effective duty stack for China-origin electronics roughly: base MFN + Section 122 + Section 301. Vietnam, Mexico, and Korea-origin electronics avoid Section 301 but pay Section 122 unless USMCA-qualifying.
Electronics imports – consumer electronics, semiconductors, components, instruments – face complex Section 122 exposure. Most are not in Annex II; few are USMCA-qualifying; many face Section 301 stacking from China origin.
For SMB electronics importers, the practical questions are: what is my effective duty stack by origin, can I shift to lower-cost origins, and what mitigation works.
Effective duty stack by origin
China-origin electronics: base MFN (often 0-2%) + Section 122 (15%) + Section 301 (List-specific, 7.5-25%). Effective rate often 22-42%.
Vietnam-origin electronics: base MFN + Section 122 (15%). Effective rate roughly 15-17%. No Section 301 unless trans-shipment scrutiny finds China origin.
Mexico-origin USMCA-qualifying electronics: base MFN only. Section 122 exempt. Effective rate often 0-3%.
Korea-origin electronics: base MFN + Section 122 (15%) under MFN treatment, or KORUS-preferential rates. KORUS-qualifying does not exempt from Section 122 but reduces base MFN.
Section 232 semiconductor outlook
Section 232 semiconductor investigation is in review. Current scope and rate determination remain pending. If sectoral coverage lands, semiconductors and adjacent components could move out of Section 122 stack into Section 232 stack – typically higher overall.
Vietnam origin scrutiny
CBP scrutiny of Section 301 trans-shipment via Vietnam has intensified. Misclaimed Vietnam origin where substantial transformation does not occur in Vietnam exposes the importer to retroactive Section 301 plus penalties.
Mitigation options for SMB electronics importers
HS classification review (some products can shift into lower-rated subheadings or Annex II categories), supplier shifts (China to Vietnam, Mexico, or Thailand), USMCA qualification analysis (where Mexican production is feasible), and IEEPA refund recovery on the prior year of imports.
Frequently asked questions
Are semiconductors in Annex II?
No. Semiconductors and most electronic components are not in Annex II. They pay Section 122 unless USMCA-qualifying.
Can I shift from China to Vietnam to avoid Section 301?
Yes – provided substantial transformation actually occurs in Vietnam. Documentation must support the origin claim.
Does USMCA help for electronics?
For electronics with substantial Mexican production, USMCA qualification can provide both Section 122 exemption and base-rate preference. The qualification work is non-trivial; we run analyses on a fixed-fee basis.
What about Korean electronics under KORUS?
KORUS provides preferential base rates for Korean-origin electronics meeting rules of origin. KORUS does not exempt from Section 122; goods still pay 15% surcharge.
Are IEEPA refunds available for electronics?
Yes – for entries between April 5, 2025 and February 24, 2026 that paid IEEPA duty. See /ieepa-refund-guide/.
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