Issue link: https://iconnect007.uberflip.com/i/1193979
14 PCB007 MAGAZINE I DECEMBER 2019 "requires structural reforms and other chang- es 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 ob- ligates China to make substantial purchases of U.S. goods and services and establishes a stronger dispute resolution process. In re- sponse, the U.S. has postponed new tariffs that were scheduled to go into effect on De- cember 15 and cut the tariff rates on the most recent previous round. To determine the effects tariffs on U.S. elec- tronics 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. Here's what we learned: • Almost 90% of U.S. electronics manufac- turers are troubled by higher tariffs imposed by the United States and China on each other's imports • Companies are choosing to invest less in the United States, laying off staff, or slowing the hiring process • On average, companies are seeing tariff increases on 31% of the total dollar value of the products they import • 25% of companies report over half of the dollar value of the products they import are facing higher tariffs • More than one-third of companies cannot increase their prices to cover the cost of higher import tariffs due to various factors • 51% of responding companies report they are now sourcing from countries other than China as a result of increased tariffs on Chinese imports Rising Tariffs Put a Painful Squeeze on Electronics Manufacturers IPC recognizes that you—our members and customers—are greatly affected by the on- going tariff dispute between China and the United States. To date, the two countries have imposed tariffs on hundreds of billions of dol- lars 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 One World, One Industry by Dr. John Mitchell, IPC—ASSOCIATION CONNECTING ELECTRONICS INDUSTRIES