HS Code:
AC transformers, falling under HS Code 8504.31 (electrical transformers with a power handling capacity not exceeding 1 kVA) and related subcategories, are critical components in electrical systems used to step up or step down voltage levels for various applications. These include power distribution, industrial machinery, and consumer electronics. They play a vital role in ensuring efficient energy transmission and safety in electrical circuits. The global trade of AC transformers reflects the demand for energy infrastructure development, industrial automation, and renewable energy systems.
Total Trade Volume
USD 15.2 billion
Data from 2022
Source
United Nations Comtrade Database & International Trade Centre (ITC)
Average Rate
5.2%
Highest Rate
12.0% (imposed by certain developing countries to protect domestic industries)
Lowest Rate
0.0% (under free trade agreements like EU Single Market or USMCA)
Rising demand for energy-efficient transformers
Increased trade in transformers meeting stringent energy efficiency standards, driven by global sustainability goals and regulations like the EU Ecodesign Directive.
2021-2023
Growth in renewable energy projects
Higher demand for transformers used in solar and wind energy systems, boosting trade in specialized step-up transformers for grid integration.
2020-2023
Supply chain disruptions due to geopolitical tensions
Delays and cost increases in transformer trade due to raw material shortages (e.g., copper, steel) and trade barriers, particularly affecting exports from China.
2022-2023
The United States imposed additional tariffs of 25% on certain Chinese electrical components, including AC transformers, as part of ongoing trade tensions.
May 2023
Increased costs for US importers and a potential shift in sourcing to other countries like Vietnam and Mexico.
The European Union introduced stricter energy efficiency requirements for transformers under the Green Deal framework, mandating lower energy losses.
January 2023
Non-compliant manufacturers face market access restrictions, while compliant exporters see increased demand in the EU market.
A significant rise in copper prices, a key material in transformer production, has affected production costs and trade profitability.
March 2022
Higher transformer prices globally, with some countries increasing domestic production to reduce import reliance.