Electronic Component Manufacturers NAICS 334416, 334417, 334419

Feb 22, 2026 - Trump Administration's Tariffs Struck Down By US Supreme Court

• The US Supreme Court ruled in late February 2026 that President Trump exceeded his authority when imposing tariffs using a law reserved for a national emergency. The decision only invalidates tariffs implemented using a 1977 law called the International Emergency Economic Powers Act (IEEPA). IEEPA tariffs represent about half of the import taxes that the government is collecting each month, according to National Public Radio. Electronic component manufacturers are likely to benefit if the cost of goods imported from countries that were hit with tariffs decreases. The Trump administration can use other laws to impose duties on goods from other countries, however, and President Trump issued an executive order shortly after the Supreme Court ruling that implements a new tariff under Section 122 of the 1974 Trade Act. Section 122 allows the president to institute a "temporary import surcharge" of up to 15% if he finds there are "large and serious United States balance of-payments deficits" or to "prevent an imminent and significant depreciation of the [US] dollar in foreign exchange markets." The tariffs can last for up to 150 days, after which Congress may have to take action to extend them, according to NBC News, and the law is also not clear on whether the administration could restart the tariffs immediately after the 150 days with another executive order. The new tariff will result in a major decrease to tariffs applied to most key trading partners, according to NBC News. Trade Representative Jamieson Greer said, however that the administration would also open Section 301 investigations on "most major trading partners" on an "accelerated timeframe." The investigations could allow the administration to impose tariffs under that section of the 1974 law if it finds that "the rights of the US are being denied under any trade agreement," or whether any trade agreement is "unjustifiable and burdens or restricts United States commerce." Other approaches to tariffs also remain available: The Trump administration has already used Section 232 of the 1962 Trade Expansion Act to impose tariffs on goods determined to be a national security threat. Section 232 has been applied it to goods ranging from aluminum to bathroom vanities, according to Business Insider.
• Electronic component manufacturers benefiting from reshoring may also benefit from nearshoring, according to the Reshoring Initiative (RI). Harry Moser, founder of RI, says that if a product is so labor intensive that you can’t bring it to the US, then companies are sometimes surprised to find that wages in Mexico are far lower than in China. The average Mexican manufacturing worker earns $4 an hour, while the rate in China — where wages have been gaining 10% to 15% a year — is currently around $7, and in the US, it’s roughly $23. Products coming from Mexico end up with an average 40% US content, while in China they have 5% US content.

• Management consulting firm McKinsey has projected a shortage of 90,000 skilled technicians in the US by 2030. Electronic component manufacturers may struggle to fill open positions as a result. McKinsey expects demand for technology skills to rise 20% above 2019 levels (based on hours) by 2030. Many firms are struggling on three fronts: talent acquisition, retention, and organizational health, according to McKinsey. Companies need to respond by getting a strategic grip on the challenge and creating career offerings at least as attractive as those of tech giants that have been more successful on these fronts.
• Electronic component shipments have rebounded from a pandemic-era dip and remain above pre-pandemic levels, according to the US Census Bureau. Electronic component prices increased slightly during the first nine months of 2025, according to the US Bureau of Labor Statistics (BLS). Electronic component manufacturing industry employment decreased slightly and average wages for nonsupervisory employees increased slightly during the first eight months of 2025, according to the BLS. New orders for electronic components began rising at the start of the coronavirus pandemic and remain above pre-pandemic levels.