Mexico’s IT Sector Hit by US Tariffs on Phones, Semiconductors

Mexico's telecom and information technology (IT) sectors are grappling with uncertainty following the recent imposition of 25% tariffs on key Mexican products by the US government. These tariffs, expected to affect imports of critical items such as mobile phones, semiconductors, and electronic components, are compounded by an economic outlook of stagnation and significant budget cuts in technology spending for 2025. Analysts warn that the tariffs could drive up prices and hinder industry growth.

“Any tariff increases prices and generates unemployment. The tariffs on steel and aluminum could drive up the cost of some devices and telecommunications infrastructure,” said Jorge Bravo, President, Mexican Association of the Right to Information (AMEDI).  

Bravo noted that telecom products, including mobile phones like the iPhone, depend on aluminum, while steel is crucial for telecom towers, base stations, and networks. However, he clarified that the impact of tariffs would initially affect products made from stored materials and existing equipment.

“IT companies will face higher logistics and manufacturing costs, which could ultimately be passed on to consumers,” explained Sofía Pérez, President, Mexican Association of Information Technology Industry (AMITI).

Pérez emphasized that the tariffs pose challenges for companies engaged in both services and manufacturing. Since many Mexican tech products incorporate components from international suppliers, particularly in Asia, the tariffs could disrupt supply chains and increase manufacturing costs for local producers.

In response, the National Chamber of the Electronics, Telecommunications, and Information Technologies Industry (CANIETI) has urged the Mexican government to take immediate action. CANIETI has expressed concerns over the long-term consequences of the tariffs, warning that they could stifle growth and innovation in the sector.