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The Government Circuit: Four Things to Know About IPC Advocacy in 2025

As the calendar turns to mid-February, IPC’s government relations and advocacy work is in full swing around the world. Here are four things to know, big picture, about how we’re approaching the current, very complicated situation.  

Trade War: Trump’s Tariffs and Trade Policy Reviews
Given the speed of action occurring under this heading, there is a good chance this paragraph may be out-of-date by the time you read it. But over the last few weeks since U.S. President Donald Trump took office, he has imposed an additional 10% tariff on all Chinese imports and issued tariff threats against Canada and Mexico, although after talks with those countries’ leaders, he later announced a 30-day delay. Trump also has threatened to raise tariffs on the European Union and Taiwan, and he signed a policy memorandum directing actions on more than a dozen trade policy initiatives. 

Given the dispersed, global nature of many electronics companies’ supply chains, we know this could affect your company, and we are focused on tracking new developments and sharing information with our members. Of course, IPC’s government relations team also will be prioritizing engagement with the U.S. Department of Commerce and the U.S. Trade Representative over the coming weeks and months to advocate for the electronics industry.

In the meantime, if your company depends on an international supply chain, here are a few things you can do. 

• If you have not yet completed IPC’s trade sentiment survey, you can share your perspectives here or contact my IPC colleague Rich Cappetto. 
• You can view all the relevant official trade actions along with frequent IPC updates and analyses on our trade policy webpage.

On a related front, a new study by a noted expert on semiconductors concludes “the grave deterioration of the North American electronics manufacturing base is a security risk” and must be remedied with new policies. 

Echoing IPC’s “silicon-to-systems” campaign, Chris Miller, author of the book Chip War: The Fight for the World's Most Critical Technology, writes, “Today, every defense system relies on electronic components, an increasingly large share of which can be produced only in Asia. The Chips and Science Act will partly address this problem for chips, but it exists in other segments of the supply chain too.” IPC’s seminal 2021 report on the North American electronics ecosystem is cited. 

Echoing IPC, Miller calls for a deeper approach to supply chain security and industrial base resiliency, urging an expansion of current policies beyond microchips and diversification of electronics component manufacturing. 

Just over the horizon, a major legislative battle is shaping up over budget and tax issues, which could also affect your company’s strategy. As soon as all the pieces can be lined up, Congressional leaders may attempt to enact a large “budget reconciliation” package with deep cuts in government spending—possibly affecting defense electronics—as well as a tax cuts package. This means that now, more than ever, industry must press hard early on our tax policy priorities, such as creating a 25% credit for domestic manufactured PCBs, as called for in the Protecting Circuit Boards and Substrates Act. IPC will also urge preserving the 2017 tax cuts that are set to expire, including the 21% corporate tax rate, the pass-through deduction, and full immediate expensing for capital equipment purchases; and to reestablish the immediate deduction of R&D expenses, which began phasing out in 2023. 

Please let us know what you think about potential tax changes and our U.S. advocacy priorities. If you’re fired up and want to communicate directly with your elected representatives, contact my IPC colleague Rich Cappetto, who can assist you. IPC also will be convening several advocacy days in Washington this year, and you’re invited to join us for one of those. 

European Commission’s Competitiveness Compass   
Of course, the United States is not the only government that is concerned about its strategic industrial base and global competition. In January, the European Commission published its so-called “Competitiveness Compass,” a blueprint for the EC policy process for the next five years. The document sets out an array of measures to translate three major imperatives into reality: “closing the innovation gap,” decarbonization, and “reducing excessive dependencies and improving security.” 

IPC welcomes the plan’s emphasis on simplifying regulations, reducing reporting burdens, and building workforce skills as “horizontal enablers.” As concrete measures are now proposed and put into place to advance these priorities, IPC will continue to call on policymakers to integrate a comprehensive electronics manufacturing strategy into the European competitiveness strategy. Please contact my colleague Alison James if you’d like to be involved in that effort. 

IPC Driving Electronics Advocacy Across South Asia
Meanwhile, some of the most interesting government policy work occurring anywhere is in India and the rest of South Asia, where IPC is working to strengthen relationships with government officials and support the region’s booming electronics industries.

For example, on February 1, Indian Finance Minister Nirmala Sitharaman announced the removal of import duties on PCBs, camera module parts, and USB cables, which will provide a boost to electronics products makers with operations in India, including Apple and Xiaomi. To further accelerate local production, the government is rolling out a $2.86 billion Production-Linked Incentive (PLI) scheme, expected to attract $4.576 billion in investments. NITI Aayog, a government agency and public policy think tank, has set an ambitious goal of reaching $500 billion in electronics manufacturing by 2030, generating 6 million new jobs and reinforcing India’s position as a global electronics hub.

Workforce skills are also a priority in India. In the 2025 Union Budget, the Indian government proposed establishing five National Centres of Excellence for the manufacturing workforce. The budget also supports the expansion of Global Capability Centers (GCCs) in Tier-2 cities, aiming to bridge the talent gap between urban and rural areas. 

Meanwhile, IPC is also making significant strides in Malaysia. In January, IPC’s newly appointed Country Manager, Dr. Ranee Ramya, met with multiple government bodies to promote IPC’s educational initiatives to help manufacturers improve their export capabilities. In 2024, IPC reinforced its commitment to skills development in the country by signing Memorandums of Understanding (MoUs) with the Penang Skills Development Center and the Selangor Human Resource Development Center. Additionally, the Malaysian Trade Promotion Agency will support local SMEs in participating in the IPC APEX 2025 show in the USA, providing them with global exposure.

Read more on IPC’s advocacy work in South Asia in this IPC Blog to get involved. 

IPC’s Expanding EMS Policy Agenda 
IPC members represent all facets of the electronics industry, including design, printed board manufacturing, electronics assembly, test, and advanced packaging. More than 3,000 companies around the world depend on IPC programs and services to further their competitive advantage and success.

For 2025, IPC is making a fresh effort to address the government policy pain points of the EMS sector.  A core group of EMS leaders has been working for months to develop an up-to-date advocacy platform, and Feb. 19–20, they will convene in Washington, D.C., to take some big steps forward together.  

Specifically, the gathering will include presentations and discussions on the most pressing policy issues facing the EMS industry, including trade and tariffs, export controls, tax reform, sustainability, and workforce development. IPC also will schedule meetings with Members of Congress and the Trump Administration for those interested in building those relationships and making their voices heard. 

Learn more and register here. 

What Are Your Concerns?
How can government policy help or hurt your company in 2025? The IPC Government Relations team welcomes your insights and questions.  

In today’s world, our lives depend on electronics. That’s why we will continue to work across the globe to educate policymakers and influential actors -- and to build relationships and partnerships for progress – as we encourage all governments to boost domestic manufacturing capabilities and shore up critical supply chains. 

Chris Mitchell is IPC’s VP of global government affairs. Contact him at ChrisMitchell@ipc.org.