The Impact of U.S.-China Tariffs on Automotive Electronics: What You Need to Know
The trade relationship between the United States and China continues to evolve, and with it comes new economic ripple effects — especially in industries dependent on global electronics manufacturing. One of the latest waves of U.S. tariffs targeting Chinese imports is already being felt in the automotive electronics sector, affecting everything from factory infotainment systems to aftermarket upgrades like CarPlay kits, backup cameras, sensors, and vehicle interface modules.
🇺🇸 What Are the New Tariffs?
In early 2024 Tariff News, the U.S. Trade Representative (USTR) reinstated or increased tariffs on a variety of goods imported from China — many of them in the tech and electronics categories. These include electronic control modules (ECUs), sensors, wiring harnesses, LED displays, and even semiconductors, which are critical components for today’s increasingly tech-heavy vehicles.
The intent behind these tariffs is to reduce reliance on Chinese manufacturing and encourage domestic production. But the short-term consequence is a price hike and supply disruption for companies — and eventually, consumers.
TARIFF NEWS: How Are Automotive Electronics Affected?
Here are the key ways the tariffs are influencing the U.S. market:
1. Increased Prices on Aftermarket Upgrades
Products like Apple CarPlay retrofit kits, blind spot monitoring systems, surround-view cameras, and head-up displays often rely on components sourced from or assembled in China. As these tariffs kick in, suppliers may face cost increases of 25-45%, many of which are already being passed down to buyers.
2. Longer Lead Times
Due to limited availability of tariff-free alternatives, some companies are experiencing delays in production and shipping. Many U.S. distributors are scrambling to rework their supply chains, while others are stockpiling parts ahead of further restrictions.
3. Limited Availability of Niche Products
Smaller manufacturers and niche aftermarket brands may temporarily discontinue certain products or reduce SKU variety due to sourcing challenges. For example, some GM and Ford-specific CarPlay/Android Auto integration kits have already seen interruptions in stock.
The Effect to MVI
We have already seen these Tariff price increases from a couple Manufacture/Suppliers that pertain to electronics brought in from China; which is most of our lineup. The initial price increase was 25%, however our biggest supplier agreed to split that cost and generously lowered that price increase to just 12.5%. We here at MVI are going to do our very best to split that cost with the client and attempt to keep our pricing increases to 6.25%. There may be some products that will be less, and there may be some that could be a bit more.
We will absolutely reduce these costs as the costs get reduced to us, so lets all remain positive that these trade wars come to successful agreements sooner than later.
We will remain dedicated to bringing you the same high quality products at the most fair price possible, while also providing the same great customer support that the market has become accustomed to.
Below is a video link of one of the products that will be affected. We still have this on stock which will not be affected by the Tariff Rate Increase. So if you are interested in Intellihaul 3.0 Camera System please feel free to contact us while it’s still in th original price.
