We Asked, You Answered on U.S. Tax and Trade Priorities

May 09, 2025

By Richard Cappetto, IPC Senior Director, North America Government Relations   

For businesses across the electronics industry, U.S. federal tax policy is not just about accounting. Nor are tariffs solely about suppliers and logistics. These policies are much bigger, affecting our decisions about investment, innovation, hiring, and global competition. 

This is especially true in 2025, as IPC members are navigating the uncertainties associated with the U.S. Government’s sweeping moves on tax reform and tariffs.

To gather insights into the risks and opportunities our members face in this environment, the IPC Industry Intelligence Unit conducted a member survey in March and April, receiving just over 100 responses from company leaders like you. Among the highlights:  

  • 2017 tax cut impacts: 54.5% said the Tax Cuts and Jobs Act of 2017 (TCJA) had had a “neutral” overall impact on their companies; 36.6% percent said it was “very positive” or “somewhat positive;” and 8.9% said “somewhat” or “very” negative.   
  • Tax cut benefits: 35.6% said the TCJA has made it possible to upgrade existing equipment and machinery; to invest in new U.S.-based manufacturing facilities (17.8%); adopt advanced manufacturing technologies such as automation, robotics, and AI; and build or upgrade R&D facilities (11.9%). Significant numbers of respondents said the TCJA had made it possible to increase wages or provide bonuses to employees (34.7%); hire additional employees (30.7%); or expand training and workforce development programs (28.7%).
  • 2025 tax reform outlook: If future tax reforms provided similar financial benefits, company executives said they would utilize the savings to invest in new or expanded U.S. facilities; hire additional U.S. staff or hike wages/benefits; and/or increase R&D spending.
  • Tax policy priorities: Asked to rate certain tax policies on how impactful they would be in encouraging domestic manufacturing expansion, 63% favored a lower 15% corporate tax rate; 58% said restoring 100% bonus depreciation of capital expenditures; 58% called for keeping the 21% corporate income tax rate; 46% backed the restoration of full, immediate R&D expensing; and 45% urged continuation of the 199A 20% pass-through deduction.
  • Tariff impacts: 40.4% said the U.S. tariff policy would have a “significant” impact on their companies, with major operational or financial adjustments required. 42.4% said they would have a “moderate “impact; 11.1% said they would have little or no impact; and 6% said it was too early to tell.
  • Tariff response strategies: The top strategies for responding to the tariffs are raising prices (78.8%); seeking new suppliers (51.5%); and investing in automation (24.2%) or other efficiencies (31.3%). Only 22.6% of respondents are considering bringing production back to the United States; 77.4% said “no” or “not yet.” 

Taken together, the survey responses point to the need for a comprehensive, constructive U.S. Electronics Manufacturing Strategy, covering taxation, tariffs, workforce, and domestic investment in key electronics technologies. IPC will be rolling out that strategy in the days to come.