Global Perspectives: How New Tariffs Are Shaping the Electronics Industry
Recent tariff announcements — spanning country-specific measures to copper foil and semiconductors — are reshaping markets and impacting the electronics industry. Global Electronics Association leaders share perspectives from their regions on what these changes mean.
Europe:
Sanjay Huprikar, Chief Global Officer
In late July, the United States and the European Union struck a wide-ranging trade deal, which imposed a 15% import tariff on most EU goods. While very few Europeans are enthusiastic about the agreement, the general sentiment from most politicians and business leaders is that evading an all-out transatlantic trade war and achieving predictability and stability in the trade relationship was important in continuing a long-term dialogue on eventually dismantling barriers.
Mexico:
Lorena Villanueva, Director
Sentiment across the electronics and related industries is tense, with companies bracing for cost pressures and supply-chain disruptions from new U.S. tariffs on copper, semiconductors, and non-USMCA goods. President Claudia Sheinbaum and Economy Minister Marcelo Ebrard have adopted a steady and strategic posture—calling the measures “unfair,” emphasizing Mexico’s right to retaliatory actions, and pursuing negotiations for exemptions and a broader “global agreement” on trade, security, and migration. In the short term, executives expect inflation, export disruptions, and slower investment—possibly triggering a recession—with Moody’s warning that tariffs of this magnitude could sharply reduce GDP growth.
From my recent tours and alliance meetings in Guanajuato, Querétaro, Chihuahua, and Jalisco, members are voicing both resilience and concern: large OEMs are accelerating supplier diversification, while smaller manufacturers—especially in wire harness, PCB assembly, and metal-mechanic segments—fear margin erosion from tariffs and a strong peso. Many are seeking timely guidance from the Global Electronics Association to adapt production lines and protect export competitiveness over the next 6–12 months.
The coming days—especially after planned bilateral meetings and announcements—will be critical in shaping both sentiment and strategic responses.
United States:
Joe Schneider, Vice President, U.S. & Canada
In the short term, companies face immediate cost pressures, supply chain instability, and interruptions in customer demand, with steel tariffs impacting customers’ equipment sales and, in turn, reducing demand for manufactured electronic products. Long-term expectations include continued volatility, potential forced redesigns to avoid constrained supply chains, and shifts in investment. Tariffs have created operational inefficiencies, prompting customers to adjust order timing to avoid overstocking, a lesson from pandemic-era inventory surpluses. Significant tariffs introduced with short notice could drive overbuying, further tightening component availability and forcing redesigns or alternate sourcing, both of which increase costs.
Strategically, companies are carrying more finished goods in collaboration with customers, exploring AI tools to anticipate supply chain changes and inform risk orders, and limiting hiring due to customer uncertainty while maintaining strong ties with temp agencies for flexibility. Currently, investments are made only when critical to current or prospective customers.
Learn more: Copper Tariffs and the Hidden Costs to U.S. Electronics Manufacturing
China:
Sydney Xiao, President, East Asia
Sino–US trade falls 20.8% in Q2; Tech exports face tariff pressure.Customs data show that China’s trade with the United States moved from year-on-year growth in Q1 2025 to a 20.8% decline in Q2. Electronic and high-tech products were among the hardest hit, following recent U.S. tariff increases on semiconductors and copper foil. While companies may face short-term order and profit pressures, the situation could also encourage technology upgrades and supply-chain diversification over time.