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According to an industry survey released on Wednesday, some U.S. electronic factories are reducing investment, slowing hiring and even layoffs due to higher costs caused by trade tariffs.
A survey by the International Association of electronic industry connections (IPC) found that one-third of the total dollar value of imports by member companies with us operations has been hit by rising costs as a result of the Sino US trade war.
The global electronics industry continues to purchase raw materials, parts and manufacturing equipment from China, and then assemble the final products in factories close to customers, covering all kinds of products from tractor control panels to medical imaging machines.
The Illinois based IPC survey found that one in five companies with operations in the United States said they were reducing investment in the United States because of new tariffs. About 13% said they were reducing hiring or staff.
"Clearly, the decline in profitability is affecting the ability of these companies to invest in the US," said Shawn dubravac, chief analyst at IPC.
Dubravac said many of the association's member companies said they were leaving China, but "according to our survey results, it seems that not many companies have returned to the United States." He said the focus was on other low-cost countries, including Vietnam and Malaysia.

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