Subject:  Evolving Tariffs 

Last Update: April 16, 2025 

Dear Customer, 

We want to update you on the rapidly evolving tariff situation affecting imported products. On April 2, 2025, the announcement of reciprocal tariffs disrupted global trade flows and significantly increased supply chain costs. Since then, escalating tensions with China have driven tariff rates to historic highs, while other countries have been granted a temporary 90-day reprieve.

This environment is completely unprecedented—changing not just daily but at times hourly— making it nearly impossible to accurately forecast or predict outcomes. Adding to the complexity, the global supply chain is highly fragmented: the same part can be manufactured at multiple sites, each with a different country of origin and tariff exposure. Navigating this landscape requires constant recalibration of cost, availability, and capacity, which are not always straightforward.

Tariffs incurred by Emerald Technologies will be passed through to customers. We will notify you using your established process or work with you to set one up if needed.

Updates:

• Effective: Mar 6th, 2025: ~25% tariff on products of Mexico and Canada – except USMCA exempt products
• Effective: Apr 10th, 2025:
  • Tariff on products of China, Hong Kong, and Macau ~125% (with additional duties (e.g., 20% IEEPA, 25% Section 301) potentially applicable depending on product classification)
  • Universal baseline tariff ~10%
  • Varies by country for reciprocal tariffs – Delayed 90 days effective April 10, 2025, reverts to 10% universal baseline
• Announced Apr 11th, 2025: Temporary exclusion of smartphones, laptop computers, memory chips, and other electronics from reciprocal tariffs from all countries including China
• Effective: May 2nd, 2025: De minimis exemptions for China and HK shipments are set to expire on May 2, 2025, which poses risk to delaying product through the customs declarations and clearance

Here is how Emerald Technologies can help you: Emerald is committed to helping you navigate supply chain challenges by offering strategies that will maintain a resilient, cost-efficient supply chain, such as reporting on Country of Origin for your Bill of Materials. While changes requiring requalification, tooling, or onboarding new suppliers can involve added complexities and potential cost implications, we’ve successfully supported transitions—such as moving a $100M+ operation from Mexico to the US in four months.

Thank you for your continued partnership. Our goal is to offer support as you determine the right decisions for your business. We remain committed to monitoring this evolving situation. Please don’t hesitate to reach out to your Program Manager with any questions or to discuss your specific needs.