Electronics and other businesses overwhelmingly say they are being hurt by higher tariffs announced by the Trump administration in recent months, according to a recent online poll of readers conducted by Fierce Electronics.
In addition to seeing costs increase, some businesses are hiring more, while others are laying people off. And in light of a changing set of tariffs and upcoming tariff deadlines, some businesses surveyed said they are waiting for greater certainty about the level of tariffs and the impact on their businesses. The largest group of respondents was in electronics, which is greatly affected by China-US trade relations because of the enormous number of electronics products and components shipped from China to the US.
The poll, conducted from June 6 to June 20, found 78% of respondents felt their businesses were negatively affected by tariffs imposed by the Trump administration starting in early April. The 78% was split with half reacting they were “very negatively” affected and the other half “somewhat negatively” affected. However, another 14% saw the tariffs as positive with another 9% seeing no impact.
Among the negatives, fully 43% said they felt the impact beginning in April, but 15% said they expect no significant impact. The poll asked several questions, including the perceived financial impact of tariffs.
When asked how much of their overall operating costs increased as a result of the tariffs, 14% said overall costs have increased more than 30%, while 10% of the group said costs increased by 21-30% and 28% saw costs up by 11-20%. Fully 22% said costs have increased by zero, with 26% saying costs have increased by 1-10%. Businesses also say tariffs have affected their spending, with 26% saying by more than half.
More specifically, the biggest impact has been on higher raw material costs followed by disruptions in supply chains.
About a third of companies (36%) reported raising prices in response to the tariffs, while 36% said they are “waiting for the dust to settle” before making any changes in business operations. More than 4% of respondents said they have increased their workforce, while more than 15% have reduced their workforce.
In addition to waiting for the dust to settle, fully 46% of respondents said they making only temporary adjustments while waiting for future policy changes. But 16% said they expect to make no changes to strategy even with tariff changes.
The largest industry responding to the survey was electronics, followed by manufacturing. As of June 20, 57 respondents started the survey and 43 completed it. Incomplete surveys were part of the total tally. The survey tool remains active and can be completed online.
Tariff rates still in flux as some wait for dust to settle
The tariff impact on electronics importers in the US is indeed fluctuating, with more details expected any day on the two-day meeting in London between Chinese and US officials that concluded June 11 with President Trump reporting on Truth Social, “Our deal with China is done, subject to final approval by President Xi and me.” He noted that the US is getting 55% tariffs on Chinese goods, while China is getting 10% on US goods to that country.
The 55% consists of a 10 baseline reciprocal tariff (worldwide), plus the 20% fentanyl tariffs and 25% Section 301 tariffs on most Chinese goods from Trump’s first term, according to reports including a China Briefing by Dezan Shira and Associates.
Some members of Congress have argued President Trump does not have the proper authority to impose tariffs. A May 28 decision by the US Court of International Trade struck down Trump’s tariffs imposed under the International Emergency Economic Powers Act, but an appeals court on May 29 issued a stay on that decision keeping the tariffs in place for now.
President Trump has long supported the use of tariffs partly to persuade companies to move manufacturing operations to the US where their products would be subject to no import tariff. In fact, Apple, Micron, Nvidia and TSMC, among others, have all announced plans for billions of dollars in new US-based manufacturing.
Tariffs and trade will the topic of a panel discussion with business experts at Sensors Converge 2025 at noon PT on Thursday, June 28, at the Santa Clara Convention Center. Admission is free with preregistration by using the code HAMBLEN.