September 25th, 2018

To Our Valued US Based Customers,

The Office of the United States Trade Representative (USTR) has confirmed and initiated approximately $200 billion worth of Chinese imports that will be subject to additional tariffs.

Any components covered by the tariffs, where China is the country of origin and specifically imported into the United States, will incur a tariff increase of 10% effective September 24, 2018. Starting January 1, 2019, the tariff will increase from 10% up to 25%.

List: https://ustr.gov/sites/default/files/enforcement/301Investigations/Tariff%20List_09.17.18.pdf

To the extent any products we import into the U.S. for a customer order are subject to the new tariffs implemented by the United States Trade Office on September 24th, 2018, NRC Electronics shall have the right to retroactively adjust its sales price or add onto the invoice to account for such tariffs. However, we are mindful of the impact these new tariffs will have on the industry and our valued customers and we will work diligently to mitigate their impact as much as possible through various initiatives we have underway.

We value our partnership with you and thank you for entrusting us with your business.

Regards,

Dennis Eisen / President