Comment on US Tariffs DigiKey: Taming Tariffs with Foreign Trade Zone and Marketplace Filters

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In the spring of 2025, U.S. trade policy is causing uncertainty regarding import tariffs. One of the world's largest electronics distributors is based in the USA: DigiKey. In a commentary, Dave Doherty, President of DigiKey, explains the company's strategy to keep customers transparently informed.

Anyone looking at the current U.S. trade policy is likely to feel uncertainty, confusion, or even annoyance regarding the import tariffs that are apparently being proclaimed quite generously. In a report, we have already attempted to analyze and categorize the situation, especially concerning semiconductors. However, we want to explicitly emphasize that the political developments are not yet concluded. The situation can change daily, making it difficult for electronics manufacturers, as well as specifically for distributors, to assess the situation.

On April 8, 2025, the U.S. distributor DigiKey, one of the world's largest providers of electronic components, provided the editorial team of ELEKTRONIKPRAXIS with a comment on the current developments in U.S. tariffs. With open words, Dave Doherty, the company's president, wants to explain how DigiKey is dealing with the current situation. The focus is primarily on transparency, such as through a special filter function in the marketplace. Additionally, DigiKey operates the largest foreign trade zone in the USA, measured by the volume of shipments. What this means and how DigiKey continues to handle the costs incurred by the tariffs is explained in the following comment from Dave Doherty.

A Dynamic Situation: Explanation by Dave Doherty, President of DigiKey

"DigiKey is in close communication with its suppliers and customs experts to mitigate or reduce the impact of tariffs on our customers as much as possible. The situation is very dynamic—we continuously monitor developments and adjust our measures accordingly.

DigiKey particularly focuses on transparency and options for customers in the area of e-commerce. We want to support our customers in their purchasing decisions as best as possible and stand by them as a reliable partner. For this reason, we have integrated a filter on our website that allows targeted searches for products with or without tariff surcharges. However, we recommend not using this filter as the sole criterion, as the tariff burden can vary greatly depending on the country of origin and the extent of processing in the respective region.

Additionally, DigiKey has invested in solutions that provide extra benefits to our international customers: Through the DigiKey Marketplace, products can be shipped directly from the supplier to the customer without first passing through our U.S. warehouse—thus avoiding importation into the USA and the associated customs costs.

In addition, DigiKey operates the largest foreign trade zone (FTZ) in the USA in terms of the number of shipments processed. Products delivered to this zone are legally considered imported only when they leave the zone and are shipped within the USA. Goods shipped directly internationally from the FTZ are therefore not considered imported into the USA and are not subject to U.S. tariffs.

In principle, DigiKey pursues the strategy of only passing on those customs costs to customers that have actually been incurred. The amount of customs duties incurred may vary depending on the supplier or product —depending on the costs directly incurred by DigiKey or what suppliers pass on to DigiKey." (sb)

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