Trump Tariffs – How to get ahead

Lucidtron are well positioned to offer direct access to long established and cost effective Philippine EMS ecosystem.

With the escalating trade war between USA and China and the latest tariff announcements, imports of electronics machinery, semiconductors and assemblies from China to the USA just got 25% more expensive.

On 6th July, the Trump administration announced $34B in goods tariffs, targeting electronic components among others. And today they announced an additional $19B worth of tariffs affecting and additional 279 products, which will take effect on 23rd of August.

This is disruptive at every level, from design through manufacture, supply chain and logistics. The impact for device makers and manufacturers is enormous, and while this continues to escalate there is a very real threat to many businesses leveraging the China supply chain and an eye on the USA market - which pretty much means everybody.

One way to avoid this supply chain disruption is to turn to other parts of Asia, with well established service providers. The Philippines is one such place offering seamless design and manufacturing transition to English speaking, well educated centers. The manufacturing sector is well established and accounts for 25% GDP, with government supported infrastructure upgrades on their way and many tier 1 players, particularly Japanese and Korean, having been resident for many years.

While the freshest trump tariffs make a big problem for many domestic American importers, the changes offers a genuine opportunity to modulate your company footprint and take advantage of the entire ASEAN region, improved labor rates, and better communications. Lucidtron have been helping global partners to produce in the Philippines and can provide direct on the ground support to get transfer and ramp up under way in no time.

Lucidtron Philippines Inc., a fully PEZA (Philippine Economic Zone Authority) registered manufacturing company is well positioned to import, manufacture and build products exclusively in the Philippines and completely avoid the trade war tariffs.