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Released March 07, 2025 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--President Donald Trump's tariffs on goods from Canada, Mexico and China are impacting manufacturing businesses across the U.S. in a variety of ways.
Trump earlier this week implemented a 10% tariff on Canadian energy imports; 25% tariff on all other goods imported from Mexico and Canada; and a 20% tariff on goods from China. However, the president on Thursday signed an executive order delaying tariffs on goods from Canada and Mexico that fall under the United States-Mexico-Canada Agreement (USMCA) until April 2.
Both Canada and China have announced retaliatory measures.
For more information, see March 7, 2025, article - Trump Pauses Mexico, Canada Tariffs for USMCA-Compliant Goods Until April, March 6, 2025, article - Trump Tariffs Continue, but Automakers will See Relief and March 5, 2025, article - Trump Tariffs Take Effect, and Retaliation Ramps Up.
The chief executive officers of IBM (Armonk, New York), Intel Corporation (NASDAQ:INTC) (Santa Clara, California), Qualcomm (San Diego, California) and HP (NYSE:HPQ) (Palo Alto, California) will meet with Trump at the White House on March 10, according to reporting from Bloomberg and a spokesperson for HP.
In the company's fourth-quarter 2024 earnings call, HP Chief Executive Officer Enrique Lores said the company had been tracking "geopolitical developments and are well prepared to respond to these shifting dynamics." He said HP has been working over "the past few years" to ensure "manufacturing resiliency."
"We have made significant progress," he said. "And by the end of fiscal year 2025 [on October 31], we expect more than 90% of HP products sold in North America will be built outside of China."
Industrial Info is tracking a $300 million expansion underway at HP's Corvallis Semiconductors Plant in Benton County, Oregon aimed at boosting manufacturing capabilities for the company's microfluid semiconductors that are critical in life sciences lab equipment for drug discovery, single cell research and cell line development. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here to read a detailed project report.
Meanwhile, Intel Chief Financial Officer David A. Zinsner said the following regarding the company's fourth-quarter financial results: "While difficult to quantify, we suspect a portion of Q4 revenue upside was due to customers' hedging against potential tariffs ... In addition, we see added pressure coming from macro uncertainty, especially around tariffs, balancing of PC inventory and increasing competition."
The HP project is supported by $50 million in funding from the U.S. CHIPS Act, which was signed into law by President Joe Biden in 2022 after the bill received bipartisan support. The legislation provided $280 billion in new funding to boost the domestic production of semiconductors and chips, as well as related research and development.
Although the CHIPS Act received bipartisan support, Trump in his recent speech to a joint session of Congress called for a repeal of the legislation. "Your CHIPS Act is a horrible, horrible thing," the president said, after noting Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) (Hsinchu, Tawain) recently announced investment in the U.S. "We give hundreds of billions of dollars, and it doesn't mean a thing."
Following Trump's speech, Republican Speaker Mike Johnson said Republicans will "wait on" the administration's upcoming budget proposal to "see how he handles" the CHIPS Act before making any decisions one way or the other.
The tariffs' effect on prices are evident in the Institute for Supply Management's (ISM) February Report on Business, which surveys purchasing and supply executives among 18 manufacturing industry sectors in the U.S. The survey was conducted before the initial tariffs went into effect March 4.
"Prices growth accelerated due to tariffs, causing new order placement backlogs, supplier delivery stoppages and manufacturing inventory impacts," Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee, said in a discussion on the organization's latest Purchasing Manager's Index. "Demand eased, production stabilized, and destaffing continued as panelists' companies experience the first operational shock of the new administration's tariff policy."
Fiore said inputs for February--which the ISM defines as supplier deliveries, inventories, prices and imports--"revealed the first signs of supplier difficulties due to some pull-forward deliveries and discussions about who will pay for tariffs."
Respondents to the survey discussed impacts from the trade war.
A respondent from the Machinery sector said the incoming tariffs were causing "sweeping price increases" from suppliers. Meanwhile, one from Chemical Products said, "The tariff environment regarding products from Mexico and Canada has created uncertainty and volatility among our customers and increased our exposure to retaliatory measures from these countries."
An executive from Primary Metals said customers were "very hesitant" to "commit to long-term volumes due to the market uncertainty caused by proposed tariffs on steel/aluminum imports."
Trump in February reinstated a 25% tariff on steel imports from foreign nations and increased the tariff on aluminum from 10% to 25%; they are set to go into effect March 12, and Trump on Thursday indicated the tariffs remain unchanged.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Trump earlier this week implemented a 10% tariff on Canadian energy imports; 25% tariff on all other goods imported from Mexico and Canada; and a 20% tariff on goods from China. However, the president on Thursday signed an executive order delaying tariffs on goods from Canada and Mexico that fall under the United States-Mexico-Canada Agreement (USMCA) until April 2.
Both Canada and China have announced retaliatory measures.
For more information, see March 7, 2025, article - Trump Pauses Mexico, Canada Tariffs for USMCA-Compliant Goods Until April, March 6, 2025, article - Trump Tariffs Continue, but Automakers will See Relief and March 5, 2025, article - Trump Tariffs Take Effect, and Retaliation Ramps Up.
The chief executive officers of IBM (Armonk, New York), Intel Corporation (NASDAQ:INTC) (Santa Clara, California), Qualcomm (San Diego, California) and HP (NYSE:HPQ) (Palo Alto, California) will meet with Trump at the White House on March 10, according to reporting from Bloomberg and a spokesperson for HP.
In the company's fourth-quarter 2024 earnings call, HP Chief Executive Officer Enrique Lores said the company had been tracking "geopolitical developments and are well prepared to respond to these shifting dynamics." He said HP has been working over "the past few years" to ensure "manufacturing resiliency."
"We have made significant progress," he said. "And by the end of fiscal year 2025 [on October 31], we expect more than 90% of HP products sold in North America will be built outside of China."
Industrial Info is tracking a $300 million expansion underway at HP's Corvallis Semiconductors Plant in Benton County, Oregon aimed at boosting manufacturing capabilities for the company's microfluid semiconductors that are critical in life sciences lab equipment for drug discovery, single cell research and cell line development. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here to read a detailed project report.
Meanwhile, Intel Chief Financial Officer David A. Zinsner said the following regarding the company's fourth-quarter financial results: "While difficult to quantify, we suspect a portion of Q4 revenue upside was due to customers' hedging against potential tariffs ... In addition, we see added pressure coming from macro uncertainty, especially around tariffs, balancing of PC inventory and increasing competition."
The HP project is supported by $50 million in funding from the U.S. CHIPS Act, which was signed into law by President Joe Biden in 2022 after the bill received bipartisan support. The legislation provided $280 billion in new funding to boost the domestic production of semiconductors and chips, as well as related research and development.
Although the CHIPS Act received bipartisan support, Trump in his recent speech to a joint session of Congress called for a repeal of the legislation. "Your CHIPS Act is a horrible, horrible thing," the president said, after noting Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) (Hsinchu, Tawain) recently announced investment in the U.S. "We give hundreds of billions of dollars, and it doesn't mean a thing."
Following Trump's speech, Republican Speaker Mike Johnson said Republicans will "wait on" the administration's upcoming budget proposal to "see how he handles" the CHIPS Act before making any decisions one way or the other.
The tariffs' effect on prices are evident in the Institute for Supply Management's (ISM) February Report on Business, which surveys purchasing and supply executives among 18 manufacturing industry sectors in the U.S. The survey was conducted before the initial tariffs went into effect March 4.
"Prices growth accelerated due to tariffs, causing new order placement backlogs, supplier delivery stoppages and manufacturing inventory impacts," Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee, said in a discussion on the organization's latest Purchasing Manager's Index. "Demand eased, production stabilized, and destaffing continued as panelists' companies experience the first operational shock of the new administration's tariff policy."
Fiore said inputs for February--which the ISM defines as supplier deliveries, inventories, prices and imports--"revealed the first signs of supplier difficulties due to some pull-forward deliveries and discussions about who will pay for tariffs."
Respondents to the survey discussed impacts from the trade war.
A respondent from the Machinery sector said the incoming tariffs were causing "sweeping price increases" from suppliers. Meanwhile, one from Chemical Products said, "The tariff environment regarding products from Mexico and Canada has created uncertainty and volatility among our customers and increased our exposure to retaliatory measures from these countries."
An executive from Primary Metals said customers were "very hesitant" to "commit to long-term volumes due to the market uncertainty caused by proposed tariffs on steel/aluminum imports."
Trump in February reinstated a 25% tariff on steel imports from foreign nations and increased the tariff on aluminum from 10% to 25%; they are set to go into effect March 12, and Trump on Thursday indicated the tariffs remain unchanged.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
