Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

U.S. Electronics Manufacturers Express Concern Over Tariffs

By MetalMiner Market OverviewOct 24, 2019 05:10AM ET
U.S. Electronics Manufacturers Express Concern Over Tariffs
By MetalMiner   |  Oct 24, 2019 05:10AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

Numerous companies have expressed concern over the U.S.’s tariffs over the last year and change, in many cases citing the tariffs when referring to gloomy earnings forecasts or workforce reductions.

From beverage can makers to automobile manufacturers, numerous sectors have bemoaned the impact of the Trump administration’s tariffs on their bottom lines (whether it’s the Section 232 tariffs on steel and aluminum or the vast series of Section 301 tariffs on goods from China).

That tariff pain has also been felt by the electronics sector, according to recent survey results from the IPC.

In IPC’s recent research report titled “Tariff War Fallout: U.S. Electronics Manufacturers Worried About Higher Tariffs and Laboring to Mitigate Impacts,” 86% of manufacturers surveyed between Sept. 25 and Oct. 2 were concerned about tariffs.

“On average, companies report they have seen tariff increases on approximately 31 percent of the total dollar value of the products they import,” the IPC report said. “Twenty-five percent of companies report over half of the dollar value of the products they import are facing higher tariffs.”

Some respondents indicated the tariff climate had an impact on their decisions regarding investment. According to the IPC, 21% of survey respondents indicated they are reducing their investments in the U.S.

In addition, 30% reported sales were down as a result of the tariffs.

“Some companies may choose to absorb the higher costs associated with tariffs to maintain sales levels,” the report states. “But this approach results in higher costs, which will inevitably hurt margins. Moreover, some companies report that even raising prices is not stopping margin compression and weaker sales.”

In terms of supply chains, the tariffs have also prompted a shift out of China.

“Some 51 percent of responding companies report they are sourcing from countries outside of China as a result of increased tariffs on Chinese imports,” the report notes. “Nearly one in five companies (19%) report they are moving manufacturing and potentially other business interests outside of China.”

by Fouad Egbaria

U.S. Electronics Manufacturers Express Concern Over Tariffs

Related Articles

U.S. Electronics Manufacturers Express Concern Over Tariffs

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email