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The Government Circuit: Navigating New Trade Headwinds and New Partnerships

As global trade winds continue to howl, the electronics manufacturing industry finds itself at a critical juncture. After months of warnings, the U.S. Government has implemented a broad array of tariff increases, with fresh duties hitting copper-based products, semiconductors, and imports from many nations. On the positive side, tentative trade agreements with Europe, China, Japan, and other nations are providing at least some clarity and counterbalance. 

Through it all, the Global Electronics Association remains steadfast in our mission to educate policymakers and advocate for our members in the halls of government. Here’s an update on where things stand.  

New Tariffs Raise Alarms Across the Electronics Sector
In recent months, the White House has significantly escalated its use of tariffs and trade enforcement as its preferred tools for reviving U.S. manufacturing. The pace of action has been dizzying, requiring everyone in our industry to pay close attention to a growing list of concerns. 

Within just the last 30 days, the United States extended its trade talks with China for another 90 days; imposed “reciprocal” tariffs ranging from 10% to 50% on dozens of nations; and implemented a 50% tariff on semi-finished copper products and copper-intensive derivatives, including copper foil and other electronics-grade inputs. President Trump also announced his intention to impose a 100% tariff on imported chips and semiconductors, with yet-to-be-determined carve-outs for certain domestic manufacturers. 

The copper tariff is particularly disruptive. Copper is not just an input—it is the essential connective tissue in everything from PCBs to wiring harnesses and electric vehicle components.

The Global Electronics Association issued a statement that said the action “will hit U.S. printed circuit board (PCB) fabricators especially hard. … With no scalable domestic supply, U.S. electronics manufacturers will face higher costs, delay investments, and potentially even cut jobs. … This move directly undercuts President Trump’s goal of rebuilding American manufacturing and promoting American exports in strategic sectors.” 

In a recent meeting with White House officials, the Global Electronics Association urged policymakers to exempt electronics-grade copper inputs, and we presented the results of our survey of U.S. board fabricators and EMS firms on the potential negative impacts. Check out this Industry Intelligence Brief for our complete analysis. 

The situation with semiconductors is no less consequential. Although the U.S. Government has sought to encourage domestic semiconductor fabrication through the CHIPS and Science Act, the near-term reality is that many U.S. manufacturers remain reliant on global chip foundries. Products containing chips may cross borders multiple times before being delivered in finished products. Thus, higher tariffs on chips threaten to raise costs for everything from consumer electronics to military systems, undermining efforts to reshore key sectors.  

Meanwhile, India, a rising electronics power and a strategic counterweight to China in global supply chains, is also caught in the crosswinds. Recently, President Trump imposed an additional 25% tariff on certain Indian imports, citing evidence that India is importing oil from Russia. Electronics products are largely exempt, although companies are advised to double-check the applicability based on specific product classifications. The tariff announcement comes as U.S.-India bilateral trade talks remain ongoing, with both sides expressing cautious optimism despite rising tensions. 

It’s worth noting that these tariff actions are framed not only as economic protection but also as national security measures, particularly in the context of tensions with China. While such justifications are politically potent, they often lack nuance about the complexity and interconnectedness of modern supply chains.

Bright Spots: Trade Progress with Key Partners
Despite the fierce headwinds, the outlook is calmer in several places.  

For example, in the days leading up to President Trump’s self-imposed deadline for countries to reach trade deals with the U.S. to prevent tariff hikes, the U.S. finalized deals with the European Union, Japan, Vietnam, South Korea, the Philippines, and Indonesia. Although those deals still include base import tariffs of around 15%, they do provide some clarity for electronics manufacturers and defuse the threat of even higher tariffs for now. 

Together, these partnerships demonstrate that cooperation on trade matters is still possible, even amid protectionist rhetoric. 

In another positive note outside the tariffs arena, President Trump recently unveiled a new National AI Action Plan aimed at advancing U.S. leadership in the global AI race. The Global Electronics Association applauded the plan and urged the Administration to prioritize the domestic electronics manufacturing capacity to support AI leadership.

Last October, the Association published a paper that concluded several electronics sub-sectors are “critically important” for AI and in need of significant government support to create a stronger supply chain. The plan also has good provisions on developing a skilled workforce, convening industry stakeholders, and leveraging the Defense Production Act to scale up strategically important defense technologies. 

The Association’s Response: Advocacy in Action
The Global Electronics Association views all these developments in the context of our longstanding experience and our recent report on international trade flows in the electronics industry. Electronics manufacturing is the most globally interconnected industry in the world, totaling $4.5 trillion or more than 20% of global merchandise trade.

Another key conclusion was that to remain a major electronics producer, any country, including the United States, must also be a major importer of specialized inputs. Trade relationships with countries supplying semiconductors, PCBs, laminates, and raw materials are not just economic concerns, they are essential to sustaining domestic electronics manufacturing, innovation, and national security.  

Indeed, the idea of “decoupling” with China or any other nation is economically unrealistic. No single country can replicate the multi-nation value chain behind modern electronics. Governments should invest in domestic strengths, coordinate with international partners, and align trade and industrial policy with the realities of a globally connected electronics sector. 

Policy solutions aimed at increasing resilience or reducing dependence must start by recognizing that electronics trade is driven by global inputs, not just final outputs. Any attempt to reshape these networks must take this structure into account.

The Global Electronics Association has been actively engaging with U.S. policymakers to ensure that that message is heard.

We’ve submitted formal comments to the U.S. Government urging caution and greater consultation with industry stakeholders before imposing new trade barriers. Our recommendations include tariff exclusions for critical manufacturing inputs, greater transparency and simplicity in tariff administration, and targeted investments in domestic infrastructure to build strategically vital capabilities.  

Behind the scenes, our government affairs team has met directly with White House officials, key Members of Congress, and agency staff from both parties, building bipartisan awareness of how tariffs affect not just multinational OEMs but also the small and mid-sized suppliers that form the backbone of the U.S. electronics ecosystem.

This advocacy builds on our core belief: U.S. competitiveness is best advanced through a comprehensive strategy including investment in innovation, a more skilled workforce, and stable, rules-based trade. 

Get Involved: Your Voice Matters
To our members across the country and around the world: Now is the time to get involved.

Whether you're a PCB fabricator in Texas, an EMS provider in California, or a component supplier in Japan, your operations are directly shaped by your national government’s trade policies. Your voice carries weight with policymakers, especially when paired with on-the-ground data and firsthand insight.

We invite you to:

• Let us know your company’s specific trade concerns so that we can better represent you in our advocacy campaigns.
• Participate in upcoming policy briefings.  
• Join us for visits to government officials in your national capital.  
• Add your name to the letters we’re preparing to the Trump administration, key Members of Congress, and government leaders worldwide.  

In times of policy volatility, collective action is our best defense—and our greatest strength. With your engagement, we can ensure that our industry remains not just resilient, but thriving.

Chris Mitchell is vice president of global government relations for the Global Electronics Association.