Time to read: 3 min
While the flurry of import tariff changes following the post-Liberation Day volatility has calmed somewhat, fast-moving engineering teams still have questions. In fact, many customers have chosen to avoid non-U.S. manufacturing due to concerns about tariffs.
While tariffs have increased costs, the concern for prototypes is likely unwarranted, as the general cost guidelines have remained fairly consistent.
This post offers general guidance for making Fictiv purchasing decisions, based on the options available through our global manufacturing network. The focus is specifically on prototype parts.
Prototype parts previously would enter the U.S. duty-free, so you didn’t need to know much about tariffs. On March 12th, the U.S. Government imposed a 25% tariff on prototype parts made from Aluminum and Steel, regardless of their country of origin outside the U.S.
Keep in mind that if your parts are made from materials besides Aluminum or Steel, or were made within the U.S., they remain duty-free.
Here Are 3 Examples:
Prototyping Example Order #1
- The part is Aluminum, fabricated using CNC from a machine shop in China.
| Price | $289.97 |
| Shipping Cost | $68.35 |
| Duty | $72.49Rule: Section 232 Aluminum and Steel prototypes are subject to a 25% tariff, regardless of the country of origin. |
| Landed Cost | $430.81 |
Prototyping Example Order #2
- The part is Aluminum, fabricated using CNC from a machine shop in the U.S.
| Price | $630.3 |
| Shipping Cost | $41.08 |
| Duty | $0Rule: U.S. made, duty free |
| Landed Cost | $671.42 |
Prototyping Example Order #3
- The part is Delrin plastic, fabricated using CNC from a machine shop in China.
| Price | $280.20 |
| Shipping Cost | $68.36 |
| Duty | $0Rule: At this time, prototypes made with materials other than Aluminum and Steel are not subject to tariffs due to Chapter 98 duty exemptions. |
| Landed Cost | $348.56 |
What Should You Do When Fabricating Multiple Parts?
With this basic understanding of the calculations and more about Section 232 on prototype parts, what should you do if you need to fabricate a number of parts for your project?
Since Fictiv operates manufacturing facilities in China, India, Mexico, and the U.S., you’ll see the following options in our self-service ordering platform:
Because of Fictiv’s global manufacturing network, your manufacturing options include:
Overseas → When you select the “overseas” option, you are directing us to manufacture in either China or India.
U.S. Only → When you select U.S.-only, the part must be produced in the U.S.
North America → Choosing “North America” means your parts may be produced in either the U.S. or Mexico. This flexibility helps us optimize our capacity production and so we offer gives you a better price.
Generally, even with the 25% duty in place, your decision remains the same as before on a landed cost basis. The example below is illustrative as part cost is determined through many factors, but broadly, you can think of your options as follows:
| Region | Lead Time Advantage | Cost Advantage |
| U.S. Fastest lead time → Higher Cost | x | |
| North America (U.S., Mexico) Fast lead time → Balanced price | x | x 15-25% lower than U.S. |
| Overseas Good lead times → Lower price | x 50-60% lower than U.S. |
Most of what you see in the news is about the high reciprocal tariff rates for China. But you can see from the above that, for prototype work, the same rules as before apply. Choose “Overseas” if you want the same high-quality parts, have more time before you need them, and want to save money. Choose the U.S. if you need the fastest lead time possible or if you have a made in the U.S. preference. Choose North America to save some money, and don’t mind the potential cross-border logistics friction.
With the Fictiv service, we strive to provide you with a number of options to balance cost, lead time, and risk. We’re always here to guide you (link to contact email) if you have questions or wish to discuss other options.
