Tariffs


Connected Development Tariff Information

Connected Development, a Division of Exponential Technology Group, is committed to keeping customers informed about factors that may impact pricing on the products we supply. Global trade policies continue to evolve, and certain U.S. government–mandated tariffs may apply to imported goods based on product classification, country of origin, and active federal regulations. We actively monitor tariff requirements and work closely with manufacturing partners to ensure accurate application of tariffs across our supply chain. For questions regarding how tariffs may affect a specific order or part number, please contact your Connected Development representative.

Questions:
https://www.connecteddev.com/contact

Current U.S. Tariff Programs That May Affect Connected Development Products

Tariffs currently applicable to certain electronic components include:
  • Section 301 tariffs
  • Section 122 tariffs
  • Section 232 tariffs (applied only when product classifications meet federal criteria)
  • Section 338 tariffs

Connected Development applies these tariffs when required under U.S. law.

Section 301 Tariffs

Section 301 of the Trade Act of 1974 authorizes the U.S. Trade Representative (USTR) to investigate and respond to foreign trade practices considered unfair or harmful to U.S. interests. Key concerns addressed under Section 301 include:

  • Forced technology transfer
  • Intellectual property violations
  • Limited or restricted market access
  • Trade practices deemed discriminatory against U.S. companies

Beginning in 2018, the United States implemented a series of Section 301 tariff lists applying additional duties on products imported from China. Many electronic components fall into the affected Harmonized Tariff Schedule (HTS) classifications.

Applicability of Section 301 tariffs depends on:
  • The product’s HTS code
  • The country of origin
  • The corresponding USTR tariff list
  • Updates, extensions, or revisions issued by the USTR

Section 301 Lookup Tool:
Leverage the Section 301 Lookup Tool to verify whether a specific HTS code is subject to Section 301 tariffs:
https://ustr.gov/issue-areas/enforcement/section-301-investigations/search

Connected Development monitors these classifications regularly and applies Section 301 tariffs when federally required.

Section 122 Tariffs

Section 122 of the Trade Act of 1974 authorizes the U.S. government to implement temporary tariff adjustments when needed to address balance of payments situations.

Current Application:
At present, all goods covered under Section 122 are subject to a flat 10% tariff rate.

However, some products may qualify for exemptions, depending on their HTS classification and country of origin.

For more information on Section 122 Duties and Exemptions:

Connected Development evaluates each shipment individually and applies Section 122 tariffs or exemptions based on current CBP and federal guidance.

Section 232 Tariffs (as applicable)

Section 232 of the Trade Expansion Act of 1962 authorizes the U.S. Department of Commerce to determine whether certain imports threaten national security. Based on these findings, tariffs or import restrictions may be imposed—primarily on:

  • Steel products and derivatives
  • Aluminum products and derivatives
  • Certain downstream or derivative metal-based products

Although most Connected Development electronic components are not subject to Section 232 tariffs, some products may fall within covered HTS classifications due to:

  • Metal housings or enclosures
  • Precision-machined metal components
  • Assemblies containing steel or aluminum materials

When applicable, Section 232 tariffs are assessed based on:

  • HTS code
  • Country of origin
  • U.S. Customs and Border Protection requirements

Connected Development ensures that any Section 232 tariffs are applied accurately and only when required by U.S. law.

Section 338, applicable to certain imports from Canada

Section 338 tariffs impose an additional 50% duty on certain Canadian-origin products identified by specific HTS classifications. These tariffs are separate from normal customs duties and are not eligible for relief under the United States-Mexico-Canada Agreement (USMCA), meaning USMCA preferential treatment does not exempt covered products from Section 338 duties.

IEEPA Tariffs Discontinued: Refund Guidance

In February 2026, the Supreme Court of the United States issued a ruling that the International Emergency Economic Powers Act (IEEPA) does not grant the President authority to impose tariffs.  Tariffs imposed pursuant to Section 301, Section 232, Section 122, and other congressionally authorized trade statutes remain in force and were not implicated by the Court’s decision. U.S. Customs and Border Protection is developing and implementing the Consolidated Administration and Processing of Entries (“CAPE”) refund program for IEEPA duties in phases, which are underway but remain incomplete.

USMCA (Canada & Mexico)

Qualifying United States-Mexico-Canada Agreement (USMCA) goods remain exempt from the Section 122 surcharge, as federal guidance confirms that products originating in Canada or Mexico are not subject to the 10% levy. This ensures tariff‑free movement of eligible North American components and manufacturing inputs.

XTG Free Trade Zone

Connected Development is a Division of Exponential Technology Group, Inc. (XTG). XTG's Texas warehouse is a free trade zone. Duty Deferral or Exemption: Products can be imported, stored, processed, and re exported without paying customs duties until they enter the domestic U.S. market. No duties are paid on imported goods that are later re-exported in bond.

This may provide customers with opportunities for duty reduction or deferral depending on how their shipments are routed.

General Trade & Tariff Resources

Tariff regulations evolve as global trade conditions change. Connected Development reviews official government publications and tariff schedules from leading regulatory agencies, including:

Customers are encouraged to consult these authoritative sources for the most current regulatory information.

Our Commitment

Connected Development remains committed to:

  • Applying tariffs accurately and transparently
  • Ensuring compliance with all U.S. trade regulations
  • Monitoring evolving global tariff environments
  • Supporting customers with clear and up-to-date information

For assistance with order-specific tariff questions, please reach out to your Connected Development account team or visit our contact page: https://www.connecteddev.com/contact.