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IPC recognizes that you—our members and customers—are greatly affected by the ongoing tariff dispute between China and the United States. To date, the two countries have imposed tariffs on hundreds of billions of dollars in imports in a tit for tat that was poised to escalate further if an agreement was not reached soon.
On Friday, December 13, the United States and China announced they had struck a “phase one” deal that effectively pauses the trade war that has flared between the countries over the last two years.
IPC welcomed news of the “phase one” deal. The Trump administration says the deal “requires structural reforms and other changes to China’s economic and trade regime in the areas of intellectual property, technology transfer, agriculture, financial services, and currency and foreign exchange.” It also obligates China to make substantial purchases of U.S. goods and services and establishes a stronger dispute resolution process. In response, the U.S. has postponed new tariffs that were scheduled to go into effect on December 15 and cut the tariff rates on the most recent previous round.
To determine the effects tariffs on U.S. electronics manufacturers, IPC conducted a survey of its U.S. members. The results reflect how difficult it is for a global industry to navigate this uncertainty.
To read this entire column, which appeared in the December 2019 issue of PCB007 Magazine, click here.