HS Code:
The 'Under 3.7 kW' category typically includes electric motors and generators with an output not exceeding 3.7 kilowatts (HS Code: 8501.10). These products are essential components in various applications, including household appliances, small machinery, and automotive systems. This category is critical in industries focusing on energy efficiency and compact power solutions, often used in devices requiring low power output. The trade of these products is influenced by global demand for energy-efficient technologies, industrial automation, and consumer electronics.
Total Trade Volume
USD 2.5 billion
Data from 2022
Source
United Nations Comtrade Database
Average Rate
4.5%
Highest Rate
12% (imposed by certain developing countries to protect local industries)
Lowest Rate
0% (under free trade agreements like EU-Japan EPA)
Rising demand for energy-efficient motors
Increased trade volume due to global push for sustainability and lower energy consumption in appliances and industrial applications
2021-2022
Shift towards automation and IoT integration
Growing need for small motors in smart devices and automated systems, boosting exports from tech-driven economies
2020-2022
Supply chain disruptions due to geopolitical tensions
Temporary decline in trade volume in specific regions, with diversification of supply sources by importers
2022
The European Union introduced stricter energy efficiency standards for electric motors under 3.7 kW, requiring manufacturers to comply with updated labeling and performance criteria.
July 2023
Potential increase in production costs but long-term benefits in market access for compliant exporters
A revised trade agreement reduced tariffs on small electric motors, facilitating smoother trade flows between the two largest economies.
March 2023
Expected rise in export volumes from China to the US, benefiting manufacturers in the under 3.7 kW category
Innovations in brushless DC motors under 3.7 kW have improved efficiency and durability, gaining traction in consumer electronics markets.
September 2022
Increased competitiveness for countries investing in R&D, such as Japan and South Korea