Threat of new tariffs cast shadows over 2025

President-elect Donald Trump stated on Truth Social that he plans to impose a 25% tariff on all goods imported from Canada and Mexico, along with a 10% increase on existing tariffs for imports from China.

"On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States, and its ridiculous Open Borders," the President-elect writes.

If this would become a reality, these changes could pose significant challenges for businesses reliant on imported components. For example, semiconductor imports from China were already subject to a 50% tariff implemented by the Biden administration in 2024 to bolster U.S.-based production. Trump’s proposed increase would raise that figure to 60%.

According to the U.S. International Trade Commission, China and Mexico are the largest exporters of electronics to the United States. In 2023, China accounted for 24.7% of electronics imports to the country, valued at USD 145.9 billion, while Mexico contributed USD 103.4 billion, representing 17.5%.

While it remains uncertain if Trump’s tariff proposals will materialise, manufacturers are on edge.

John Watts, CEO of electronics contract manufacturer QueteQ, voiced concerns about the potential fallout to Sweden's SVT News.

“I'm a small business. If the tariffs cause me to go fallow for weeks or months, I could end up running out of payroll money, and then I run out of business,” John Watts told the Swedish broadcaster.

Watts also expressed concerns that higher tariffs could lead companies to stockpile components, disrupting supply chains and causing ripple effects.

The final decision on implementing these tariffs remains uncertain, leaving businesses in a state of apprehension as they prepare for potential market impacts.

Trump will take office at the presidential inauguration on Monday, 20 January 2025.