Tariff Situation as at April 16, 2025

Basic Tariffs

China 20% + 125% = 145%

All other countries- 10%

Electronics

On Saturday April 12, 2025 Customs and Border Patrol announced a pause on tariffs on electronics. Vanguard would benefit greatly from the pause in electronic tariffs as it imports its LED displays under a HTSUS code.

On Sunday April 13, 2025 Secretary of Commerce Howard Lutnick stated the pause on electronics was temporary. The electronics tariffs would not be reciprocal but would be similar in nature to the automobile tariffs that now stand at 25%.

President Trump on April 14, 2025, stated that he might pause the automobile tariffs as well as the electronic tariffs. But he then went on to say that he would be introducing Electronics tariffs with the next week or so.

It is impossible to anticipate what the electronics tariff will be.

Effective today April 16, 2025, there are no tariffs on electronics. However the basic tariff on China remains 20%, plus 125% on non-electronic products imported into the USA. The basic tariff on all other countries is 10%.

Actions that Vanguard Has Taken In Anticipation of the Tariffs

Based on a concern that Taiwanese diodes were becoming scarce and that the possibility of an invasion of Taiwan was very real, Vanguard LED Displays has entered into an exclusive agreement with a company in South Korea to produce its TAA compliant Axion and Axion and Axion Invictus Fine Pitch LED displays.

South Korea is a TAA signatory country and a Free Trade Agreement (FTA) country to which the United States has unilaterally extended TAA procurement benefits.

Components undergo “substantial transformation” in South Korea and are therefor TAA compliant.

Once determined, the electronics tariff will be added to the South Korean base tariff of 10%.

The tariff Vanguard will ultimately charge its customers will be LESS THAN HALF of the total South Korean tariff of 10% + the electronics tariff.