Trump Tariffs May Spell Trouble for More than Just the Electronics Industry
U.S. President Donald Trump announced sweeping tariffs on imports from Canada, Mexico, and China this week, threatening a global trade war that could rope in everyone from electronics companies to car manufacturers.
The U.S. announced 25% tariffs on goods from Mexico and Canada and an additional 10% tariff on top of existing import taxes on Chinese goods. While the new tariffs target the country's top three trade partners by value, the situation is evolving rapidly: Mexico and Canada reached deals with the Trump administration to postpone the 25% tariffs until next month, while China countered with retaliatory tariffs on U.S. imports and warned of potential sanctions against several U.S. companies, including Google.
Electronics companies are on edge about the new tariffs, which could disrupt the global supply chain and increase prices for companies sourcing foreign-made components or materials to produce goods, according to industry experts. A wide range of chips and other electronic components, particularly circuit boards, heavily rely on Chinese production. Tariffs against Mexico and Canada could complicate matters further for companies that design electronic products or assemble them into cars, AI data centers, and other systems.
While it will take time to get clarity on the specific components and products affected by the tariffs, electronics companies are keeping close tabs on U.S. trade policy, which remains in flux as the Trump administration alternates between using tariffs as a negotiating tactic and as a motivator to restore U.S. manufacturing. President Trump has threatened more severe taxes—as high as 100%—on Taiwan-made chips. Taiwan is home to TSMC, which manufactures advanced-node chips for NVIDIA, Apple, and many other U.S. giants.
Senior editor James Morra of Electronic Design, editor-in-chief Robert Schoenberger of IndustryWeek, and executive editor Sara Jensen of Power & Motion discussed the tariff plans in a panel moderated by Electronic Design content director Bill Wong. They explore the potential impact of the tariffs on electronics, automotive, and other companies and how the complexity of the global supply chain is muddying the waters.
They also discuss the tariffs in the context of efforts to expand U.S. manufacturing, including the CHIPS and Science Act. Electronics companies and their chip suppliers are increasingly diversifying their supply chains by moving production closer to home.
Panelists
Robert Schoenberger
Editor-in-Chief at IndustryWeek
Robert Schoenberger has been writing about manufacturing technology in one form or another since the late 1990s. He began his career in newspapers in South Texas and has worked for The Clarion-Ledger in Jackson, Mississippi; The Courier-Journal in Louisville, Kentucky; and The Plain Dealer in Cleveland, where he spent more than six years as the automotive reporter. In 2014, he launched Today's Motor Vehicles (now EV Manufacturing & Design), a magazine focusing on design and manufacturing topics within the automotive and commercial truck worlds. He joined IndustryWeek in late 2021.
Sara Jensen
Executive Editor at Power & Motion
Sara Jensen is executive editor of Power & Motion, directing expanded coverage into the modern fluid power space, as well as mechatronic and smart technologies. She has over 15 years of publishing experience. Prior to Power & Motion she spent 11 years with a trade publication for engineers of heavy-duty equipment, the last three of which were as the editor and brand lead. Over the course of her time in the B2B industry, Sara has gained an extensive knowledge of various heavy-duty equipment industries — including construction, agriculture, mining and on-road trucks —along with the systems and market trends that impact them, such as fluid power and electronic motion-control technologies.
James Morra
Senior Editor at Electronic Design
James Morra is senior editor for Electronic Design, covering the semiconductor industry and new technology trends, with a focus on power electronics and power management. He also reports on the business behind electrical engineering, including the electronics supply chain. He joined Electronic Design in 2015 and is based in Chicago, Illinois.
William Wong
Senior Content Director at Electronic Design
Bill Wong is the editor of Electronic Design, focusing on embedded, software, and systems. As senior content director, he also manages Microwaves & RF, working with a great team of editors to provide engineers, programmers, developers, and technical managers with interesting and useful articles and videos on a regular basis. He has a BEE from Georgia Institute of Technology and an MS in Computer Science from Rutgers University.
