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Date: April 10, 2025 Author: Infinite Automation Newsroom   Washington, D.C. – April 9, 2025: In a move that sent shockwaves through global electronics manufacturing, former President Donald Trump announced a 145% tariff on all Chinese imports—including Surface Mount Technology (SMT) equipment and components—escalating the ongoing trade war to unprecedented levels. The policy, aimed at countering what Trump called "unfair trade practices and intellectual property theft," has already begun disrupting the delicate supply chains of the global SMT industry. China-Made SMT Equipment Becomes Uncompetitive Chinese manufacturers are major suppliers of SMT equipment such as pick-and-place machines, stencil printers, conveyors, loaders, nozzles, feeders, and PCB handling systems. With the 145% tariff, U.S. importers face skyrocketing costs, rendering Chinese products financially unviable in the U.S. market. For example, a fully automatic PCB loader previously priced at $3,000 would now cost over $7,300 after tariffs—making Korean, Japanese, or even refurbished Western-made machines more attractive to buyers. Worldwide SMT Prices on the Rise As U.S. buyers turn to alternative suppliers, global demand for non-Chinese SMT solutions has surged. This sudden demand spike is driving up equipment prices worldwide by an estimated 10–30%, especially for essential components such as SMT feeders, nozzles, and conveyor systems. Trade War Triggers Supply Chain Reconfiguration In response, many American EMS (Electronics Manufacturing Services) companies are seeking to relocate production to tariff-exempt countries like Vietnam, Mexico, or India. This marks a significant acceleration of the “China+1” strategy, where firms diversify manufacturing to avoid geopolitical risk. Meanwhile, Chinese companies are shifting their export focus to regions such as Southeast Asia, South America, and Eastern Europe to mitigate the loss of U.S. orders. SMT Industry Faces Rising Uncertainty Small- and medium-sized SMT equipment manufacturers in China, especially those dependent on export sales, are among the hardest hit. Many are grappling with shrinking order volumes, disrupted cash flow, and increased inventory pressure. In addition, U.S. manufacturers relying on affordable Chinese equipment now face higher production costs, potentially impacting competitiveness in consumer electronics, automotive electronics, and LED production. Experts Warn of Long-Term Decoupling Analysts warn that this tariff could deepen the technological divide between China and the United States in electronics manufacturing. With both sides accelerating efforts in self-reliance, the SMT sector could see the emergence of two separate ecosystems—one led by the West, the other by China. Conclusion Trump’s 145% tariff decision on April 9 is already reshaping the landscape of global electronics manufacturing. As the SMT industry scrambles to adjust, companies must act swiftly to realign their sourcing strategies, manage costs, and prepare for a long-term realignment of the global supply chain.