How Tariffs affect our primary component supplier
- James Wiebe
- Apr 24
- 2 min read
Radiant is committed to providing our customers with the highest value and quality of products, so that you will have a fun experience sharing the new gadget you buy from us. We love it when you use our stuff!
This post explores some of the challenges Radiant faces by focusing on our largest component vendor, a strange and enormous company called DigiKey.
Moving PCBa production back to the USA under the current tariff situation is a fool's errand.
If you've ever bought something from Radiant, it is likely that it contained components that passed through the USA distributor of ICs: DigiKey. They distribute ICs from thousands of manufacturers: Texas Instruments; 3M; Arduino... everything you know as an electronic part passes through Thief River Falls, Minnesota, home of DigiKey.
Their main building is 61 football fields in size! That's a lot of components!
Many of their imported components company are now subject to tariffs of up to 150% (maybe more, with added duties on top of tariffs. Nobody really knows, because the regulations have changed several times already this month and may change again at any moment.)
If I build and ship within the USA, my incoming parts get hit with tariffs before DigiKey gets them in stock. And then my assembled products get hit with more tariffs when they get exported to other countries.
If I build and ship anywhere else on the planet to any other destination rather than the USA, I substantially lower my cost of goods and earn a lot more money.
Example: If I build and ship in Singapore, for example, my Cost Of Goods is far lower, and I can ship to the USA with the lowest possible tariff (10%) and to the rest of the world with mostly zero tariffs.
Of course this ripples back to DigiKey.
An excellent article on DigiKey's challenges is here:
I appreciate your thoughtful comments.
Best Regards, James
Comments