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Statement from IPC, the Global Electronics Association, on Recent U.S. Tariffs and Global Trade
March 7, 2025 | IPCEstimated reading time: 1 minute
IPC shared the following statement today on U.S. tariffs and their implications on the global electronics industry. This statement can be attributed to Dr. John W. Mitchell, IPC president and CEO:
President Trump’s decision to postpone tariffs on goods covered by the United States-Mexico-Canada Agreement is the right move for building strength and resiliency in electronics. IPC urges the White House to work with the industry during the delay to protect the progress President Trump started during his first term to revitalize electronics manufacturing.
More than 10 percent of all trade with Canada and Mexico last year was in electronics, amounting to $184 billion. Both countries are major destinations for U.S. electronics exports with nearly one-third of all U.S. electronics exports headed to Canada or Mexico – roughly $80 billion in 2024.
North America’s electronics industry is deeply interconnected, with components like printed circuit boards, semiconductors, and wiring harnesses crossing borders multiple times before final assembly. Nearly 78 percent of U.S. electronics imports from Mexico and 47 percent of exports occur within intra-firm trade. For Canada, intra-firm trade accounts for 50 percent of imports and 40 percent of exports, underscoring the seamless flow of critical components that sustain U.S. electronics manufacturing. Imposing these tariffs discourages investment, disrupts supply chains, and risks pushing manufacturers out of North America.
Electronics are the backbone of innovation in AI, automotive, healthcare, and the national and economic security infrastructure. A strong domestic electronics industry is essential to maintaining U.S. leadership in many critical sectors. Tariffs on key trading partners and inputs like aluminum, steel, and copper will drive up costs, create uncertainty, and weaken a fragile U.S. electronics industry as other nations continue to invest and advance. IPC is eager to work with President Trump on his domestic pro-growth, pro-manufacturing agenda to build a stronger, more resilient industrial base.
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