Analysis of the in-depth impact of Trump's 600 billion tariff measures on PCB, chip trade and Made in China
In February 2025, former US President Trump announced that tariffs would be imposed on about $600 billion worth of Chinese goods exported to the United States, including semiconductors, PCBs (printed circuit boards) and related electronic components at a rate of 10%-100%. This policy not only exacerbated global trade tensions, but also had a profound impact on the core links of the electronics manufacturing industry chain - chip trade, PCB production and the global layout of Made in China. This article analyzes its impact from multiple angles and explores industry response strategies.
1. The impact of tariff policies on chip trade
1. Risk of global supply chain disruption
Trump's tariff policy directly targets chips produced in Taiwan, China, threatening to impose tariffs of up to 100%, aiming to force companies such as TSMC to transfer production capacity to the United States. However, about 70% of TSMC's revenue depends on the North American market. If the tariffs are implemented, the cost of its chips exported to the United States will surge, which will lead to higher prices for terminal products of US technology companies (such as Nvidia and Apple), which will eventually be passed on to consumers.
2. Short-term pain and long-term opportunities for China's chip industry
In the short term, the cost of high-end chips that China relies on imports will rise significantly, and terminal products such as mobile phones and automotive electronics may increase in price. But in the long run, the tariff policy has accelerated the process of self-reliance in China's chip industry. After the 2020 technology war, China has built dozens of chip factories, with a production capacity close to half of the world, and the domestic substitution capacity of mature process chips has been significantly enhanced. Huawei and other companies have demonstrated stronger risk resistance by de-Americanizing the supply chain.
2. Cost and market reconstruction of the PCB industry
1. Rising raw materials and logistics costs
PCB manufacturing relies on raw materials such as copper foil and copper clad laminates, and China is the world's largest PCB producer, accounting for more than 50% of global production capacity. After the United States imposed tariffs, the cost of PCBs exported to the United States increased by 10%-25%, and the profit margins of Chinese PCB companies were compressed8.
2. Trend of capacity transfer in Southeast Asia
In order to avoid tariffs, some Chinese PCB companies have accelerated the transfer of capacity to Southeast Asian countries such as Thailand and Vietnam. These regions have low labor costs and enjoy preferential export tariffs to the United States, becoming a new focus of global electronic manufacturing. However, it will take several years to transfer production capacity, and it is difficult to alleviate cost pressure in the short term.
3. Technology upgrade to cope with competition
The demand for high-end PCBs such as high-density interconnect (HDI) boards and flexible circuit boards (FPC) has increased significantly due to 5G and new energy vehicles. Chinese companies can increase product added value and offset the impact of tariffs through technology upgrades.
III. Challenges and transformation paths of China's manufacturing
1. Diversification of export markets
Under Trump's tariff policy, the cost of electronic equipment, auto parts and other commodities exported by China to the United States has risen, forcing companies to explore emerging markets such as ASEAN and the Middle East. For example, cross-border e-commerce companies reduce their dependence on the United States through overseas warehouse layout.
2. Localization and intelligent upgrade
Chinese manufacturing companies are accelerating the transformation to Industry 4.0 and reducing costs through automated production lines and AI quality inspection technology. For example, a PCB manufacturer introduced an intelligent detection system to reduce the defect rate from 3% to 0.5%, significantly improving its competitiveness.
3. Policy countermeasures and industrial chain coordination
China has imposed a 15% tariff on coal and liquefied natural gas on the United States, and expanded countermeasures to agricultural machinery, automobiles and other fields, forcing American companies to bear two-way cost pressure. At the same time, the upstream and downstream of the domestic industrial chain have collaborated on innovation, such as chip design and PCB manufacturing companies jointly developing high-integration solutions to reduce external dependence.
IV. Industry response strategies and future prospects
1. Short-term strategy: supply chain optimization and tariff avoidance
Diversified procurement: cooperate with Southeast Asian and European suppliers to diversify risks.
Tariff compliance design: adjust product classification or use rules of origin to reduce tax rates.
2. Long-term strategy: technological independence and market expansion
Increase R&D investment: focus on core technologies such as advanced process chips and high-frequency PCBs to break through the "bottleneck" link.
Layout emerging markets: through the "Belt and Road" cooperation, explore the demand for electronic manufacturing in Central and Eastern Europe, Africa and other regions.
3. Balance between globalization and localization
Build factories overseas: set up assembly bases in Mexico, Eastern Europe and other places to be close to the terminal market.
Localized services: Provide customized PCBA solutions, such as XDCPCBA PCB manufacturers, PCB assembly factories, PCBA processing services, and provide 2-6 layer PCB free proofing services to help customers quickly verify designs and seize market opportunities.
Conclusion
Trump's 600 billion tariff policy has exacerbated the turbulence of the global electronics manufacturing industry chain in the short term, but in the long run, it has promoted the independent upgrading of China's chip and PCB industries, and accelerated the intelligentization and globalization of the manufacturing industry. Chinese companies need to break through the anti-globalization wave through technological innovation, supply chain resilience construction and market diversification. In the future, only companies that master core technologies and flexibly respond to policy changes can be invincible in the fiercely competitive global market.
Recommended keywords:
Trump tariffs, PCB manufacturing, chip trade, Made in China, supply chain optimization, XDCPCBA, 2-6 layer PCB free proofing, Industry 4.0, tariff avoidance, emerging markets
Meta description:
In-depth analysis of the impact of Trump's 600 billion tariffs on PCB, chip trade and Made in China, and explore cost control, technology upgrades and global layout strategies. XDCPCBA provides 2-6 layer PCB free proofing services to help companies cope with challenges.
