–Excerpt from IPC’s comments to the U.S. Trade Representative on the possibility of imposing reciprocal tariffs on U.S. trading partners (related story below)

IPC Urges Caution on Reciprocal Tariffs, Seeks Data on Copper: IPC is urging the Trump administration to avoid any actions that make U.S. manufacturing more costly or difficult as it considers new tariffs on copper and reciprocal tariffs on U.S. trading partners.

In comments submitted to the U.S. Trade Representative, IPC encourages the USTR to pursue bilateral and multilateral negotiations to address any U.S. concerns with non-reciprocal trade policies. Should the USTR decide to go ahead, “we urge you to consider exempting imports including raw materials, components and equipment that are critical to U.S. manufacturing, and for which new sources are not available or not easily identified. … The combination of rising production costs, uncertainty of supply, and mounting compliance burdens will threaten to drive electronics manufacturing out of the United States.”

Meanwhile, the U.S. Department of Commerce requested public comments by April 1 on the possibility of imposing new trade restrictions or tariffs on copper, which is a key material for circuit boards, wiring, and semiconductor components. IPC is gathering industry data and anecdotes about how higher costs of copper could affect our members.

Last week, IPC President and CEO Dr. John W. Mitchell issued a statement praising President Trump’s decision to pause some tariffs on imports from Canada and Mexico. More than 10 percent of all trade with Canada and Mexico last year was in electronics, amounting to $184 billion. And both countries are major destinations for U.S. electronics exports with nearly one-third of all U.S. electronics exports headed to Canada or Mexico – roughly $80 billion in 2024. 

Keep track of all the relevant official trade policies along with IPC analysis on our trade policy webpage; and let us know how these actions are affecting your company. IPC Contact: Richard Cappetto  

New U.S. Labor Secretary Pledges Focus on Workforce and Manufacturing: Lori Chavez-DeRemer was sworn in this week as the 30th U.S. Secretary of Labor after a bipartisan 67-32 Senate confirmation. In a news release, Chavez-DeRemer pledged to prioritize job growth, workforce training, and manufacturing expansion under the Trump administration’s “Make America Work Again” agenda. With a background in business and workforce policy, she is expected to play a key role in shaping labor regulations that impact U.S. manufacturing. IPC looks forward to engaging with Chavez-DeRemer and her team to advocate for workforce development initiatives, expand technical training programs, and ensure policies support a competitive electronics manufacturing industry. IPC Contacts: Richard Cappetto  and Cory Blaylock.    

CHIPS Act Under Fire; TSMC Doubles Down on U.S. Investment: In recent days, the U.S. Commerce Department's CHIPS Program Office has experienced significant staff reductions as part of the Trump administration’s downsizing campaign, raising concerns about delays in semiconductor funding disbursement, Reuters reported. Also last week, in an address to Congress, U.S. President Donald Trump called for repealing the CHIPS and Science Act, which IPC has viewed as important to rebuilding adjacent sectors of electronics. Despite Trump's stance, some have argued the act has driven private investment and job creation. Meanwhile, Taiwan’s TSMC announced a new $100 billion investment in U.S. semiconductor manufacturing, expanding on its existing $65 billion commitment in Arizona. IPC continues to monitor developments and advocate for a stable U.S. electronics manufacturing strategy. IPC Contact: Richard Cappetto.

Mexico Navigates Trade Challenges with Growth in Semiconductors and EVs: Mexico’s electronics manufacturing industry faces new uncertainties in light of the U.S. Government’s imposition of 25% tariffs on many imports, reports IPC Mexico Director Lorena Villanueva. Automotive and electronics products together account for nearly half of Mexico’s exports. Some companies, including Compal Electronics and Inventec, are considering shifting operations to the U.S. to avoid higher costs, while Foxconn and Intel are expanding semiconductor production in Mexico to replace Asian suppliers. Meanwhile, Mexico’s aerospace and EV sectors continue to grow, with Monterrey emerging as an aerospace hub and EV maker Zacua strengthening domestic supply chains. IPC Contact: Lorena Villanueva.

Mexican Automotive Suppliers Gain Support Through New State Initiative: The Mexican state of Aguascalientes recently launched the State Supplier Development Program to strengthen local industry, starting with the automotive sector. The initiative provides technical support, training, and direct connections with major companies to enhance supplier competitiveness. A collaboration agreement has been signed between Industria Nacional de Autopartes (INA), representing the national auto parts industry, and the International Finance Corporation (IFC) to expand the program nationwide. The moves are intended to reinforce Aguascalientes’ position as a hub for advanced manufacturing and auto parts production. IPC Contact: Lorena Villanueva.

European Commission Unveils Automotive Action Plan: Last week, the European Commission launched a new Automotive Action Plan, outlining its vision for the industry’s evolution over the next five to 10 years. The plan is centered on five “pillars”: innovation and digitalisation; “clean mobility”; competitiveness and supply chain resilience; skills and the social dimension; and market and trade policy. Before the plan was released, IPC submitted comments to the “strategic dialogue” that preceded the action plan, emphasizing the critical role of a resilient European electronics industry in supporting the automotive sector’s needs. IPC supports well integrated strategies that bolster industrial competitiveness amid geopolitical shifts. Please let us know your thoughts on the Automotive Action Plan, and learn more here. IPC contact:  Alison James.

Industry Leaders Convene at IPC’s Tokyo Roundtable: Last week, IPC successfully launched its new Quarterly Leadership Roundtable series in Tokyo, which brought together more than 60 leaders of Japanese companies and government agencies for high-level discussions on the most pressing issues in our industry. The featured speakers, including IPC CEO John Mitchell, who is fluent in Japanese, and Akira Amari, a former member of Japan’s House of Representatives, provided valuable insights into the future of bilateral trade, technological cooperation, and the evolving global supply chain. The Tokyo Leadership Roundtables will continue throughout the year, stay tuned for updates on upcoming sessions. IPC Contact: Chris Mitchell.      

IPC APEX EXPO 2025 (Anaheim, California), Mar. 15-20: Next week, discover the newest innovations and hear from the best minds in the electronics manufacturing industry. IPC APEX EXPO 2025 is our industry’s largest event in North America, featuring a world-class trade show, professional development courses taught by industry experts, non-stop networking and more. Learn more and register here.    

John Mitchell says, “My hope is that we can focus on solutions that boost North American manufacturing rather than undermine it. Let’s use this time wisely. It’s not just about trade, it’s about the future of electronics innovation in the U.S.”

Stat of the Week: For more up-to-the-minute news on tariffs and trade policy, visit IPC’s trade policy page: www.ipc.org/advocacy/trade-policy.