U.S. Increases Tariffs on China, Canada, and Mexico—What This Means for Manufacturing

Today, February 27th, 2025, the U.S. government has announced another round of tariff hikes on imports from key trading partners, further escalating global trade tensions. President Trump confirmed today that, starting next week, the U.S. will impose an additional 10% tariff on all imports from China and move forward with 25% tariffs on products from Canada and Mexico.

What’s Changing?

• China: The new tariffs will increase existing rates by 10%, meaning that components that have been subject to a 25% import tariff, earlier this year raised to 35%, will now face a 45% import tariff.
• Canada & Mexico: A broad 25% tariff on imports from both countries is set to take effect.

The administration has positioned these tariffs as a necessary step to protect American industries. “We cannot allow this scourge to continue to harm the USA, and therefore, until it stops, or is seriously limited, the proposed TARIFFS scheduled to go into effect on MARCH FOURTH will, indeed, go into effect, as scheduled,” President Trump stated.

Impact on Manufacturing and Supply Chains

For manufacturers—especially those relying on electronic components, power supplies, and industrial equipment from China—this increase represents a major cost escalation. Many companies have already been absorbing higher costs from previous tariff hikes, and the additional 10% could further disrupt pricing.

The tariffs on Canada and Mexico also present challenges for industries that depend on North American trade agreements to streamline supply chains and reduce costs. Sectors such as automotive, electronics, aerospace, and medical device manufacturing may see significant cost increases, as well as potential retaliatory measures from affected countries.

What’s Next?

Manufacturers, distributors, and consumers alike will need to adapt. Businesses should assess their supply chains, explore sourcing options, and prepare for inevitable price increases as tariffs continue to impact global trade.

At TRC Electronics, we remain dedicated to supporting our clients through these challenges, providing guidance, and ensuring they are fully informed every step of the way.

We understand the challenges this presents and are here to support you. If you have any questions or would like to discuss how this impacts your business, please schedule a Tariff Consultation with our team here ⬅️.