HS Code:
Heading 8504 of the Harmonized System (HS) Code covers electrical transformers, static converters (e.g., rectifiers), and inductors. This category includes a wide range of products such as power transformers, voltage regulators, inverters, and other devices essential for electrical energy conversion and management. These products are critical in various industries, including energy, telecommunications, automotive, and consumer electronics, facilitating the efficient transmission and conversion of electrical power.
Total Trade Volume
USD 90 billion
Data from 2022
Source
United Nations Comtrade Database
Average Rate
4.5%
Highest Rate
12% (imposed by certain developing countries)
Lowest Rate
0% (under free trade agreements like EU-USMCA)
Growing demand for renewable energy solutions
Increased need for transformers and inverters in solar and wind energy systems, boosting trade volumes by approximately 15% annually.
2021-2022
Rise of electric vehicles (EVs)
Surge in demand for static converters and inductors used in EV charging infrastructure, contributing to a 20% growth in related product categories.
2020-2022
Digitalization and smart grids
Higher demand for advanced transformers and converters to support smart grid technologies, driving innovation and trade in high-tech segments.
2019-2022
The United States imposed additional tariffs on Chinese-made transformers and converters under Section 301, citing unfair trade practices.
May 2023
Increased costs for US importers, potentially shifting supply chains to other Asian countries like Vietnam and Thailand.
The European Union introduced subsidies and reduced tariffs for energy-efficient transformers and converters as part of the Green Deal to promote sustainability.
January 2023
Boosted imports of eco-friendly electrical equipment, benefiting exporters from Germany and Japan.
Ongoing semiconductor shortages and logistical challenges have delayed the production and delivery of static converters and inductors worldwide.
Throughout 2022
Led to a temporary 5-10% reduction in trade volume and increased prices for end consumers.