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If you’re like me, tariffs were not on your radar screen until a few months ago, but now political rhetoric has turned to presidential action. Tariffs are front-page news with major developments coming directly from the Oval Office.
These are not typical times. President Donald Trump campaigned on tariff reform, and he’s now busy revamping America’s tariff policy. Developments are unfolding so rapidly—especially with respect to bilateral negotiations with key trading partners around the world—that is been difficult to keep up.
To help shine a light on the current tariff landscape, the Global Electronics Association (formerly IPC) recently held a webinar, “U.S. Trade Developments: Electronics Industry Update,” to address the ever-evolving tariff situation.
Vice President of Global Government Relations Chris Mitchell and trade attorney Ludmilla Kasulke of Squire Patton Boggs discussed the latest policy moves, tariffs, and negotiations reshaping the electronics industry and potentially affecting you and your customers. Mitchell and Kasulke were kind enough to explain things in layman’s terms.
Mitchell opened by highlighting IPC’s new identity as the Global Electronics Association, a move designed to underscore the organization’s role in representing the entire electronics ecosystem. “Tariffs on these kinds of goods can stall investment and affect our ability to grow the industry here in the United States,” Mitchell said, pointing to duties on copper inputs and manufacturing equipment as especially harmful. The Association has published a variety of recent reports on copper tariffs and global trade flows.
Kasulke, an international trade policy expert, described the last six months as a nonstop mix of executive actions, reciprocal tariffs, and framework deals. Unlike traditional trade agreements that finalize details behind closed doors, Trump often announces the broad strokes first, with details to be worked out later. Kasulke said that this approach often creates challenges for companies with global supply chains.
She gave examples of how U.S. reciprocal tariffs with Japan and the EU differ and explained that carve-outs and exceptions are increasingly negotiated piecemeal. “It used to be one thing happened and you responded,” she said. “Now we’ve got layers of things happening all at once.”
Kasulke also noted that tariff discussions with China are “evolving on a separate track” from negotiations with other countries. Trump’s 90-day tariff “truce” with China went into effect on Aug. 11, and negotiations with the Middle Kingdom will continue through November.
Copper, Chips, and Compliance
Few issues have captured industry attention more than the 50% tariff on copper imports, implemented Aug. 1. This covers semi-finished and copper-intensive derivative products, which include copper foil critical to PCB fabrication. Mitchell said the association is making copper a top advocacy priority. A paper analyzing the impacts of the copper tariffs on the PCB industry has already been published and integrated into advocacy efforts, and another paper focused on the impacts on the wire harness industry is now underway.
Then there are semiconductors. President Trump recently suggested that a 100% tariff on chips and semiconductors could be imposed “shortly.” The only hint of relief was a vague carve-out for chip companies that are building U.S. fabs. For EMS firms and PCB manufacturers, the uncertainty is alarming. Kasulke pointed out the sheer difficulty of compliance. “My toaster has semiconductors in it,” she said, laughing, driving home the impossibility of tracking every chip embedded in every new product.
Here Come the Lawyers
Speaking of attorneys, several lawsuits are challenging Trump’s tariff authority under the International Emergency Economic Powers Act (IEEPA). (Kasulke said trade experts pronounce this eye-EE-pah, in case you run into a trade attorney at a Labor Day barbecue.)
If plaintiffs succeed, companies could see refunds for tariffs already paid, potentially stretching back years depending on how long the case takes to conclude. Kasulke noted that judges appeared skeptical of the government’s arguments in recent hearings, though outcomes remain uncertain.
In the meantime, Kasulke said that the best way forward is for companies to stay proactive. That means tracking tariff liquidation deadlines, working closely with customs counsel, and filing protests on entries within 180 days of liquidation to be eligible for refunds if tariffs are overturned.
What’s Next?
For PCB fabricators and assembly providers already facing labor shortages, reshoring pressures, and investment hurdles, tariffs are just one more wild card. Mitchell encouraged companies to get involved in the organization’s advocacy efforts.
“We’re engaging government leaders weekly,” he said. “When the time is ripe for adjustments, we want to make sure they benefit the industry.”
The next big date, Kasulke said, is Nov. 10, when the China tariff “truce” is due to expire. Without a new agreement, U.S. tariffs on Chinese imports could jump to 145%, leading to retaliatory tariffs from Beijing and potentially disrupting the global supply chain and stock markets around the world.
