Done & Doner
As of February 4, 2025, the White House indicated that President Trump has signed an Executive Order placing a 25% tariff on all consumer goods entering the US from Canada and from Mexico and increased the tariffs on Chinese goods by 10%. Additionally the $800 de minimis exemption for goods being shipped directly to consumers has been suspended. There are some general exemptions, odd as they are:
Energy or Energy Resources – Crude oil, Natural Gas, condensates, liquids, refined petroleum products, uranium, coal, biofuels, geothermal heat, the kinetic movement of flowing water, and critical minerals (defined as any non-fuel mineral, element, or substance).
The orders stay in effect until the Secretary of Homeland Security indicates to the President that these countries have taken substantial action to stem the tide of illegal substances crossing the borders, unless the President decides otherwise. The EO also gives the President the authority to increase these tariffs if these countries retaliate with tariffs on US goods.
Needless to say, Mexico is a key producer and assembler of electronics and has a number of cities that are highly focused on electronics production and assembly. Tijuana alone is responsible for producing ~20m TV sets each year, most of which go into the US, while Baja California is home to over 200 electronics companies and there is no end to the number of components for CE items that are produced in the US and sent to Mexico for assembly.
So, the question remains, is Trump taking a hard line on tariffs or is this just a show to exert some visible control over our neighbors. We expect the answer is enmeshed in how he perceives the situation unfolding politically and will take steps to spin near-=term events to his advantage regardless of the path things take. That said, the deck of cards he plays with will affect the lives of millions of people across the CE space and consumers in North America.
- Corpses, including coffin and flowers
- Donated articles
- Telecommunication transmissions
- Blueprints, diagrams, and media associated with products
- Items recovered from space
Energy or Energy Resources – Crude oil, Natural Gas, condensates, liquids, refined petroleum products, uranium, coal, biofuels, geothermal heat, the kinetic movement of flowing water, and critical minerals (defined as any non-fuel mineral, element, or substance).
The orders stay in effect until the Secretary of Homeland Security indicates to the President that these countries have taken substantial action to stem the tide of illegal substances crossing the borders, unless the President decides otherwise. The EO also gives the President the authority to increase these tariffs if these countries retaliate with tariffs on US goods.
Needless to say, Mexico is a key producer and assembler of electronics and has a number of cities that are highly focused on electronics production and assembly. Tijuana alone is responsible for producing ~20m TV sets each year, most of which go into the US, while Baja California is home to over 200 electronics companies and there is no end to the number of components for CE items that are produced in the US and sent to Mexico for assembly.
So, the question remains, is Trump taking a hard line on tariffs or is this just a show to exert some visible control over our neighbors. We expect the answer is enmeshed in how he perceives the situation unfolding politically and will take steps to spin near-=term events to his advantage regardless of the path things take. That said, the deck of cards he plays with will affect the lives of millions of people across the CE space and consumers in North America.
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