Digikey discussing how tariffs are hitting their operations
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I haven’t ordered from Digi this month, but I placed an order on Mouser yesterday and for the first time saw the tariff listed as a separate line item. All companies should do this to make people aware of the tax they’re paying. It has little to do with trade imbalance, it’s just a tax (imo).
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An interesting thing about the Tariff as a separate line item is that if you can look up the rate applied, then you can calculate the distributor markup:
Tariffs should be applied at the distributors import invoice cost. Obviously Mouser has margin on top of that landed cost and that is not subject to tariffs.
You can solve for invoice cost
I = Invoice cost (unknown)
R = Tariff rate. (should be known?)
T = Tariff cost (given at purchase)
M = Purchase Price (given at purchase)
D = Distributor Markup (unknown)
T = I * R
M = I + D
I = 5.96/.35 = 17.029 → $2.432 per part
D = $ 2.85 - $2.432 → $0.407 per part
Mouser Margin is 14.33%
What if their invoice cost is actually less? Then they have more markup on the component and get a 35% premium on top for the added tariff.
Just interesting to think about.
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