HS Code:
Alternating Current (AC) services and related equipment fall under various HS Codes depending on the specific product, such as electrical machinery and equipment under HS Chapter 85 (e.g., HS 8501 for electric motors and generators). This category includes AC motors, generators, transformers, and other equipment used for the generation, transmission, and distribution of alternating current. AC systems are fundamental to modern electrical infrastructure, powering industrial, commercial, and residential applications globally. The trade in AC-related products is driven by demand for energy infrastructure development, renewable energy integration, and industrial automation.
Total Trade Volume
Approximately $150 billion USD
Data from 2022
Source
UN Comtrade Database and World Trade Organization (WTO) reports
$40 billion USD
26.7% of total trade of total trade
Increasing
$25 billion USD
16.7% of total trade of total trade
Stable
$20 billion USD
13.3% of total trade of total trade
Increasing
$15 billion USD
10.0% of total trade of total trade
Stable
$10 billion USD
6.7% of total trade of total trade
Increasing
Average Rate
5.2% ad valorem
Highest Rate
15% (applied by certain developing countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements like EU-USMCA or within WTO member states with specific exemptions)
Rising demand for renewable energy integration
Increased trade in AC inverters and grid-compatible equipment as countries transition to solar and wind energy systems
2021-2023
Growth in industrial automation
Higher demand for AC motors and drives in manufacturing sectors, particularly in Asia-Pacific and Europe
2020-2022
Digitalization of power grids
Growing market for smart AC equipment with IoT capabilities, boosting trade in advanced electrical systems
2022-2023
The US imposed additional tariffs on Chinese electrical machinery, including AC motors and generators, as part of ongoing trade disputes.
Mid-2022
Increased costs for US importers and a shift toward alternative suppliers in Southeast Asia and Europe
The European Union introduced stricter energy efficiency standards for electrical equipment under the Green Deal, affecting AC product imports.
Early 2023
Manufacturers must adapt to new standards, potentially increasing production costs but fostering innovation in energy-efficient technologies
Post-COVID supply chain bottlenecks and semiconductor shortages have delayed production and trade of AC-related equipment.
2021-2022
Temporary price increases and delays in delivery, prompting diversification of supply chains by major importers