Response to Tariffs & Trade Updates

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Avnet's commitment to supply chain security

As part of Avnet’s tariff strategy, we are committed to collaborating across our value chain on solutions that comply with the latest outcomes of all U.S. 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. Recent updates include:

Avnet’s IEEPA mitigation solutions for tariffs enacted by the U.S. government for goods imported into the U.S. from all relevant countries.
It was announced on March 6, 2025 that the U.S. will suspend 25% IEEPA tariffs on goods that meet the rules of origin for preferential tariff treatment in the United States Mexico Canada Agreement (USMCA). Our initial analysis has concluded that few, if any, of products that Avnet supports meet these USMCA requirements.
On March 4, 2025, U.S. Customs and Border Protection (CBP), Department of Homeland Security (DHS) under the authority of the International Emergency Economic Powers Act (IEEPA) announced it will add tariffs on all products with a COO of Mexico, Canada and China.

Effective March 10, 2025, all product from COO Mexico and Canada will be subject to a IEEPA tariff recovery fee of 25% and a 20% for all COO China product.
On February 3, 2025, U.S. Customs and Border Protection (CBP), Department of Homeland Security (DHS) under the authority of the International Emergency Economic Powers Act (IEEPA) announced it will add or increase tariffs on all products with a COO of China. Effective February 10, 2025, all product from COO China will be subject to a tariff fee of 10%. The 10% fee will be in addition to any previously implemented Section 301 tariff fees.

Frequently Asked Questions

1. How will Avnet administer tariff recovery during ordering and invoicing?

As a customer, your company can expect the follow processes:

Existing backlog (orders and forecast): Avnet can provide you with past transactions, backlog and awards on impacted or potentially impacted products based on Harmonized Tariff Schedule (HTS) codes and COO. Please remember that HTS codes and COO for a given product have not been designated by suppliers on an industry standard basis. As a result, there may still be unidentified impacted products due to inaccurate or missing information.
Export customers:
- IEEPA tariff fees will be sent to export customers in a separate consolidated weekly invoice for products not entered into the Foreign Trade Zone (FTZ) or not shipped in-bond.
- For more information, please review Avnet’s official statement for export customers.
New orders: While we cannot accept orders specifying COO, we will provide COO at the time of order confirmation, when available.
Fees: Starting on March 10, 2025, Avnet began quoting and billing our customers at 25% on all Mexico and Canada COO product per the government’s new IEEPA tariff requirements; and China COO at 20%. The IEEPA tariffs will be in addition to the tariffs implemented previously under Section 301.
Terms: Your terms are net 30 days specific to the recovery tariff invoice. By establishing a 30-day payment term for tariffs, we balanced the need to provide our customers with a reasonable amount of time for prompt payment, while limiting how long Avnet has to carry the cost burden.

2. How will Avnet’s quoting process address Tariffs?

Avnet is aligned and working with our supplier partners on impacted product identification, alternative COO product potentials and the necessary information systems to provide COO information as early in the quoting process as possible so you can make the best decisions for your business. Our quoting tool enables our team to identify products that exclusively or potentially originate from tariff relevant. Your company will receive a legend on your quote, at the part-number level, that outlines impacted or potentially impacted by COO and HTS codes. For example, we are able to share the following:

Section 301 tariff List # (i.e. List 1, List 2 or List 3 or List 4)
Whether or not COO or HTS is known, unknown, or a mix
Whether tariff will be applied, potentially applied, or not applied at all

As our suppliers refine their proactive reporting to our team, we will incorporate new information and continuously improve the data that we report to you.

3. Can you provide my company with information on alternate devices not affected by IEEPA and Section 301 tariffs?

Yes, with our diverse line card and support teams, we can provide your company with alternative solutions. We can redirect you to another approved vendor list (AVL) part and leverage our inventory in different global regions to fulfill your needs. For your future designs, Avnet provides full and turnkey design capabilities that can take your idea from specification to production, using non-tariff relevant products.

4. Will Avnet increase credit limits to customers to accommodate for tariff charges?

Based on the impact that the IEEPA and Section 301 tariffs will have on your company’s overall business, our Credit department will take tariff recovery fees into consideration and adjust customer credit limits, where and when we determine necessary.

Avnet’s Tariff Mitigation Solutions

Minimize customer impact and business disruption while driving supply chain security

Avnet strategizes with its customers to mitigate tariff impacts on your business. Please work with your Avnet team on the optimal tariff mitigation solution for your business.

Our solutions include:

Avnet can mitigate tariff fees if product qualifies for and is entered into the FTZ and shipped to customers by in-bond shipping methods.
Avnet itemized tariff recovery charge relating to tariffs may be assessed. The final charge will be included on the standard invoice you receive today. Even if no tariff recovery charge is quoted, Avnet reserves the right to impose this charge whenever a tariff is incurred, or as additional country of origin information is known. Quoted pricing may not include applicable federal, state, or local sales, use, or other taxes or import duties imposed on Avnet or its suppliers.

Avnet will continue to monitor the USTR’s 301 and CBP’s IEEPA implementation of tariffs on tariff lists, along with its impact on our supply chain, and adjust our recovery charge, when appropriate. If you have any questions on our invoicing process, please contact your Avnet representative to discuss.
Collaborate with suppliers to mitigate tariff recovery charges so we can minimize impact 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.
Offer our customers product/solution alternatives, with products that are not tariff relevant. With one of the industry’s most comprehensive electronics manufacturer portfolios, Avnet 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 tariff relevant altogether by:
- Review your Bill of Materials (BOM) and provide you with alternative non-tariff relevant products from Avnet’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.
- With 2500+ engineers globally, we can provide your company with full and turnkey design capabilities to identify alternatives with the least impact to your end.

Information Section by Country

Avnet’s IEEPA tariff recovery charges

China

IEEPA China tariff fees are not dependent on specific HTS codes as they are with Section 301 tariffs.

All country of origin (COO) China product will be subject to an IEEPA tariff recovery fee of 20% that will be included in the standard invoice you receive from us today. Even if no tariff recovery charge is quoted, Avnet reserves the right to impose this charge whenever a tariff is incurred, or as additional country of origin information is known. Quoted pricing may not include applicable federal, state, or local sales, use, or other taxes or import duties imposed on Avnet or its suppliers.

If you are an export customer, you will be sent a separate consolidated weekly invoice for the IEEPA tariff recovery fees if applicable. Export customers are not always exempt from the 20% COO China IEEPA tariff recovery fees.

Mexico

All country of origin (COO) Mexico (MX) product will be subject to an IEEPA tariff recovery fee of 25% that will be included in the standard invoice you receive from us today. Even if no tariff recovery charge is quoted, Avnet reserves the right to impose this charge whenever a tariff is incurred, or as additional country of origin information is known. Quoted pricing may not include applicable federal, state, or local sales, use, or other taxes or import duties imposed on Avnet or its suppliers.

Canada

All country of origin (COO) Canada (CA) product will be subject to an IEEPA tariff recovery fee of 25% that will be included in the standard invoice you receive from us today. Even if no tariff recovery charge is quoted, Avnet reserves the right to impose this charge whenever a tariff is incurred, or as additional country of origin information is known. Quoted pricing may not include applicable federal, state, or local sales, use, or other taxes or import duties imposed on Avnet or its suppliers.

Avnet Section 301 tariff recovery charges on COO China product

Avnet’s section 301 mitigation solutions for tariffs enacted by the U.S. government for specific goods imported into the U.S. with the country of origin (COO) China, include the following:

List 1 products with 25% tariffs, effective July 6, 2018
List 2 products with 25% tariffs, effective August 23, 2018
List 3 products with 25% tariff, effective May 10, 2019
List 4 products with 7.5% tariff, effective February 14, 2020

On May 14, 2024, the United States Trade Representative (USTR) announced it will add or increase tariffs on specific items in 2024, 2025 and 2026. Effective January 1, 2025, certain USTR designated “Semiconductors” will be subject to a tariff increase from 25% to 50%. USTR is proposing additional tariffs effective January 1, 2026.