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FEBRUARY 2026 I SMT007 MAGAZINE 79 For electronics manufacturers operating highly integrated production networks across the United States, Mexico, and Canada, compliance complex- ity (i.e., product classification, documentation, and origin verification) often functioned as a tariff equiva- lent. These frictions add cost, delay shipments, and increase uncertainty even when nominal tariff rates are unchanged. In Mexico's case, the coexistence of zero-rated measures alongside targeted non- USMCA tariffs further underscores that policy execu- tion, not tariff escalation, is the primary risk vector. Looking ahead, the North American electron- ics ecosystem enters 2026 with relatively stable tariff rates but continued exposure to enforcement- driven volatility make predictability and regulatory alignment as important as formal trade policy. European Union: Persistent Tariffs Within a Broader Trade-Defense Toolkit For the European Union, the year-end 2025 tariff environment reflects continuity rather than escala- tion. A non-reciprocal tariff regime affecting elec- tronics remained in force, while additional actions tied to trade defense and retaliatory frameworks remained unresolved. As a result, electronics firms face a trade landscape in which tariffs coexist with regulatory, sustainability, and industrial-policy instruments that collectively shape market access. From an industry standpoint, EU exposure is less about sudden tariff shocks and more about policy layering. Tariffs represent one element of a broader system that includes standards, regulatory compli- ance, and potential countermeasures under trade authorities. This environment favors firms with diversified sourcing and strong compliance capabil- ities, while penalizing those dependent on narrow trade corridors. Uncertainty in 2026 lies not in whether tariffs will disappear, but in how they interact with ongo- ing negotiations and trade-defense processes, and whether incremental adjustments emerge rather than wholesale changes. Table 1: How Tariffs and Trade Measures Will Shape Electronics Supply Chains in 2026 Geography Electronics-relevant measures Rates (end of 2025) Legal authority Status at end of 2025 Key implications/ Next milestones Global Global "non-reciprocal" baseline tariff; removal of de minimis exemption for low- value imports 10% baseline; duty- free de minimis removed IEEPA In force Raises floor on electronics import costs globally; de minimis change materially affects components, acces- sories, and e-commerce shipments. Mexico Tariffs on non-USMCA goods, energy products, and potash; zero-rate under non-reciprocal regime; potential digital services tax action 25% (non-USMCA goods); 10% (energy, potash); 0% (non- reciprocal); DST TBD IEEPA; Section 301 In force + pending Tariffs themselves are secondary; enforcement, classification, and USMCA compliance drive electronics cost and risk in 2026. Canada USMCA noncompliance tariffs; non-reciprocal individual rate; additional Section 301 exposure 25% (non-USMCA goods); 10% (energy, potash); 35% (non- reciprocal); 301 TBD IEEPA; Section 301 In force + pending Stable but elevated tariff environ- ment; continued exposure tied to compliance and any escalation under Section 301. European Union Non-reciprocal individual tariff; potential Section 301 action 15% (non-reciprocal); 301 TBD IEEPA; Section 301 In force + pending Tariff pressure persists alongside regulatory and trade-defense tools; scope depends on outcomes of 301 process and negotiations. India Non-reciprocal individual tariff; India-specific measure tied to Russian oil imports 25% (non-reciprocal); 25% (Russia-oil-linked) IEEPA In force Tariffs function as part of industrial policy; predictability and sequencing remain the core industry concern heading into 2026. China China-specific tariffs and rules on low-value imports; fentanyl- linked measures; future non- reciprocal rate scheduled 10% (opioids); 120% or $100/item (low-value); 34% scheduled IEEPA In force + scheduled Tariffs are structural rather than transitional; firms plan around persis- tence, with added pressure from logistics and de minimis rules. Global Inputs Semiconductors & SME inves- tigation; copper tariffs; critical minerals review; China-linked maritime/logistics fees 50% (copper); others TBD Section 232; Section 301 In force + pending These measures act as upstream cost multipliers for electronics, even when not product-specific; key reports extend into early 2026.