BANNOCKBURN, IL — IPC today issued a statement in support of a new trade deal to replace NAFTA but decrying the threat of new tariffs on imports from Mexico. The trade group said it supports the Trump administration’s efforts to pass the US-Mexico-Canada Agreement (USCMA) but believes the imposition of new tariffs on Mexican imports to address immigration issues at the US-Mexico border will harm US electronics companies and their customers.
“New and escalating tariffs would make it harder and more costly for electronics companies and their customers to operate in the United States and add to already-heightened economic uncertainties,” said John Mitchell, president and CEO, IPC. “Placing tariffs on Mexican imports would essentially be a new tax on US companies that have invested in North American supply chains and would weaken their ability to compete globally in an industry notorious for thin margins.”
According to a new IPC report, US electronics manufacturers and their customers have developed extensive North American supply chains over the last 25 years. These supply chains, which leverage the strengths of all three countries, have permitted US manufacturers to grow domestically and better compete internationally.
Among the report’s findings:
IPC also believes the proposed tariffs would complicate efforts to win approval for USMCA in Congress.