U.S Trade Policy

United States trade policy is changing under the new Trump Administration. In keeping with promises from the presidential campaign regarding heavy use of tariffs, President Trump signed the America First Trade Policy memorandum on his first day in office, January 20, 2024. This memorandum orders more than a dozen studies of U.S. trade policy with recommendations due April 1, 2025. Separately, the President has announced tariffs on individual countries to negotiate policy goals on issues related to immigration and border security. He has communicated consistently an interest in relying on tariffs as a major policy tool in his second administration. 

IPC is tracking and actively engaging with officials in Washington on behalf of the electronics industry. View relevant official trade policies along with our rapid updates below. 

 

Globe with tariff signs
Daily Updates
2/4/25: China Tariffs Continue
  • Tariffs on Mexico and Canada are effectively postponed by virtue of border security agreements with President Trump. The White House re-issued executive orders with the effective date for the tariffs extended to March 4.
  • The 10% tariff on imports from China is now in effect as of 12:01AM today. The Department of Homeland security notice amending the Harmonized Tariff Schedule of the United States (HTSUS) is now on the Federal Register website.
  • Based on preliminary review of the notice, all goods from China and Hong Kong are included except for humanitarian donations and certain informational media (books, CDs, records, etc.)
  • Notably, there is no allowance for de minimis exemption for shipments under $800. Therefore, all mail shipments from China will require formal entry.
  • China announced new tariffs effective February 10 that include a15% tariff on coal and liquefied natural gas, and a 10% tariff on crude oil and a longer list of agricultural machines, vehicle engines, and electric trucks
  • President Trump has suggested that the U.S. and China may engage in discussions similar to Mexico and Canada, but as of this morning it is unclear the timeline or probability of that happening.
  • Reminder: while this raft of tariffs are largely being treated as round 2 in the President’s negotiating strategy for immigration goals, there is still more than a dozen “reviews” of U.S. trade policy ordered by the Day One “America First Trade Policy” memorandum set to be completed by April 1. Today, White House Senior Counselor for Manufacturing and Trade, Peter Navarro, reiterated the White House vision of achieving a “structural shift” of the economy with tariff revenue.

 

Community Feedback

 

Another snapshot of the results from the survey opened on Friday is below. Again, if you have not yet completed the survey, please take a quick moment to share how these tariffs will impact your business. 

 

  • 68% of respondents foresee increased material and component costs, citing tariffs as a significant financial pressure.
  • At the same time, 14% believe tariffs could offer a competitive advantage, reducing foreign competition and opening market opportunities.
  • 58% expect to raise product prices as a direct result of increased input costs.
  • However, 21% see potential demand growth for U.S.-sourced components, suggesting a shift toward domestic suppliers.

 

Please let the team know if you have any questions or if there’s anything particular that you would like to see our Government Relations team to advocate on, or find intel on as we engage with officials in Washington. 

Trade Policies
Extension of Mexico Tariffs (30-day from 2/4)

PROGRESS ON THE SITUATION AT OUR SOUTHERN BORDER

Extension of Canada Tariffs (30-day from 2/4)

PROGRESS ON THE SITUATION AT OUR NORTHERN BORDER

China Tariffs