HS Code 8517 Tariff: Malaysia to United States

Current tariff rates for telephone sets, including smartphones and other telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528; parts thereof: (HS code 8517) imported from Malaysia to the United States.

Hedge tariff risk: Trade tariff prediction markets on Ballast Markets to lock in costs and protect margins against future tariff changes.

Current Tariff Rate (2025)

| Component | Rate | Details | |-----------|------|---------| | MFN (Column 1) | 0% | Most-Favored Nation base rate |

| Total ETR | 0% | Effective Tariff Rate |

Trade Volume (2023)

• Annual Imports: $23.96B (2023)
• HS Code: 8517
• Origin: Malaysia
• Destination: United States

Tariff History

• USMCA/FTA: 0% tariff on qualifying goods

Landed Cost Impact

Example Calculation for HS 8517 from Malaysia:

| Cost Component | Amount | % of Total | |----------------|--------|------------| | FOB Price | $1000 | 78% | | Ocean Freight | $150 | 12% | | Insurance | $15 | 1% | | Customs Duties (0%) | $0 | 0% | | Inland Transport | $120 | 9% | | Total Landed Cost | $1285 | 100% |

USMCA Advantage: Malaysia imports qualify for 0% tariffs under USMCA/FTA, providing significant cost advantages over other sourcing options.

Comparison to Alternative Sources

| Country | Typical Tariff | Price Advantage | |---------|---------------|-----------------| | Malaysia | 0% | Baseline | | Mexico | 0% (USMCA) | Equal | | Canada | 0% (USMCA) | Equal | | China | 0% | Equal | | Vietnam | 0% MFN | Equal |

Note: Actual tariff rates vary by specific product classification and country-specific trade agreements. Verify with customs broker.

Hedging Strategies

1. Tariff Prediction Markets

Problem: Tariff rates can change with 30-90 days notice via USTR actions.

Solution: Tariff prediction markets allow you to hedge:

Example:

• Exposure: $10M annual HS 8517 imports from Malaysia
• Current tariff cost: $0.0M (0%)
• Risk: Tariffs increase to 25% → additional cost
• Hedge: Buy "US-Malaysia Tariff > 10% by Q4 2025" position

Learn more: How to Hedge Tariff Risk

2. Sourcing Diversification

Strategy: Split sourcing between Malaysia and USMCA countries to hedge tariff volatility.

Example Mix:

• 60% from Malaysia (0% tariff)
• 40% from Mexico (0% tariff via USMCA)
• Blended rate: 0% (vs. 0% all-Malaysia)
• Annual savings: $0.0B

3. Pre-Tariff Stockpiling

If tariff increase expected:

• Order 3-6 months inventory before effective date
• Cost: Increased working capital (inventory holding)
• Benefit: Lock in current 0% rate vs. potential 25%

Related Tariff Pages

• HS Code 8517 Overview - Product classification guide
• Malaysia-US Trade Profile - Bilateral trade overview
• Section 301 Tariffs Explained - China trade actions
• USMCA Qualification - 0% tariff requirements

Sources

• U.S. International Trade Commission (USITC) HTS Database (accessed 2025-11-04)
• USTR Section 301/232 Tariff Lists
• U.S. Census Bureau International Trade Data (2023)

Risk Disclosure

This content is for informational and educational purposes only and should not be construed as financial, legal, or investment advice. Tariff rates are subject to change based on government policy and trade negotiations. Verify current rates with U.S. Customs and Border Protection (CBP) or qualified customs brokers before making sourcing decisions. Prediction markets involve risk of loss.

Disclaimer

Ballast Markets provides this content as a free educational resource for the global trade community. Tariff data is sourced from USITC and USTR but may contain errors or be outdated. For compliance purposes, always verify rates with official sources. Trade statistics from Census Bureau may have reporting delays.

Last updated: 2025-11-04