As I sat down to write this month’s viewpoint, I had several ideas floating around in my head. However, given the fact that this date coincided with the March 4 deadline for President Trump’s tariffs to go into effect on Mexico, Canada, and China, I couldn’t think of a more timely topic to cover in this editorial. Since the Trump Administration took office, this continues to be a fluid situation. Nevertheless, I think it’s important to ponder what these tariffs may mean for the electrical industry.
Implemented on March 4 by President Trump as a measure to address national security concerns/combat drug trafficking and trade imbalances (in an effort to revitalize U.S. manufacturing and reduce trade deficits), the United States imposed a 25% tariff on most goods from Mexico and Canada (with energy exports from Canada facing a 10% tariff), and the existing 10% tariff on Chinese goods increased to 20%. Reciprocal tariffs on other countries will kick in on April 2. To set the stage for what many are calling a “trade war,” global tensions are definitely heating up because goods from China, Mexico, and Canada accounted for more than 40% of imports into the United States in 2024; these three countries are also the top three export markets for our country.
What does all of this mean? I’m certainly no economist, but, depending on what source you’re citing, you’ll find the situation characterized as everything from a necessary means to safeguard American interests and level the playing field, revitalize domestic industries, and protect American jobs to economic suicide that will inevitably lead to increased inflation, higher interest rates, a risk of recession, increased consumer costs, and ongoing market volatility. According to a piece by Reuters, “CEOs and economists say Trump’s tariffs on Canada and Mexico, covering more than $900 billion worth of annual U.S. imports, will deal a serious setback to the highly integrated North American economy.”
Whether that will happen — and to what extent — is yet to be seen. How will the new trade policies affect the electrical construction market in terms of material prices (such as copper wiring and availability of electrical equipment like electrical panels, switchgear, and transformers to name a few), equipment lead time, and supply chain issues? The National Electrical Contractors Association (NECA) sent out an alert to its membership in early February, summarizing the immediate risks such tariffs could pose as well as offering strategies stakeholders should adopt to mitigate risks at ecmweb.com/55267362. The National Electrical Manufacturers Association (NEMA) issued a statement on March 5 from Debra Phillips, president and CEO, encouraging a long-term deal that strengthens trade across North America. “As the second largest U.S. exporter and second largest U.S. importer of manufactured goods, electrical manufacturers play a pivotal role in securing American energy independence and ensuring a secure and resilient grid — investing tens of billions of dollars in U.S. manufacturing and creating thousands of new jobs for American workers across the country,” she said in the statement. “New trade policies must provide predictability and certainty for future domestic investments, allowing for a reasonable transition period for new large-scale manufacturing to come online and for supply chains to move.”
As of press time (a few days after President Trump’s speech to Congress in which he admitted the tariffs may cause “a little disturbance”), the President had granted automakers a one-month exemption from the 25% tariffs on Mexico and Canada (as of March 5) on vehicles that comply with the United States-Mexico-Canada Agreement (USMCA) free trade treaty. On March 6, he also announced a one-month tariff delay on all products from Mexico and Canada covered under the USMCA until April 2. Considering how many times the tariffs have changed in the last three days alone, by the time this print issue hits readers’ hands or the digital edition drops online, things could have changed many more times. After experiencing the whiplash of covering this breaking news story, I can’t help but wonder if this is truly about tariffs.
Whatever agreement is ultimately reached on exact percentages of duties collected, deadline extensions, exemptions, or specific goods, the overall chaos and instability this atmosphere is creating — not to mention uncertainty in many of the vertical markets our audience serves — must, at least to some degree, be affecting electrical professionals when it comes to business planning, economic forecasting, and supply chain strategies. As this story continues to unfold, you can bet EC&M will bring you the latest updates and analysis.
