**United States**: The US electronics industry faces uncertainty from potential tariffs, driving a shift towards circular manufacturing. Emphasising recycling and sustainable practices could reduce dependency on global suppliers and stabilise costs, while barriers like education gaps and R&D cuts challenge widespread adoption.
In recent weeks, the US electronics industry has experienced significant uncertainty surrounding the possibility of tariffs on electronic goods. The speculation on whether tariffs would be imposed has led to a rollercoaster of expectations, with the President indicating that any tariff exemptions currently in place would be short-lived. This potential policy shift poses consequential pressures on the industry, particularly on the nearshore supplier networks that depend on globally distributed manufacturing, assembly, and supply chains.
The US industrial ecosystem at present lacks the extensive infrastructure required to independently meet the demands for consumer, commercial, and high-performance electronic products. However, an emerging potential consequence of tariffs might be an increased emphasis on circularity—the recycling and repurposing of materials and components—to bolster domestic manufacturing capabilities. This shift towards circular electronics manufacturing is seen as a strategic response to supply chain volatility and material sourcing uncertainties, similar to challenges experienced during the pandemic.
The principle of circularity in electronics involves an operational ecosystem where materials such as metals and rare earth elements are recovered through recycling, remanufacturing, and repair instead of being discarded at the end of a product’s lifecycle. This approach could support the US electronics industry by providing locally sourced feedstocks, thus reducing dependency on foreign suppliers. Products would be designed for longevity and ease of disassembly, with comprehensive data collection informing material use and lifecycle impacts. Economically viable research and development (R&D) would underpin scalable circular manufacturing practices, sustained by appropriate technologies, policies, and incentives.
At the height of tariff discussions, the potential price surges for consumer electronics raised concerns about drastic drops in demand. For instance, projections suggested that iPhone prices could soar beyond $2,000, risking a 75 percent decrease in consumer purchases. Such volatile conditions are unfavourable to business stability, and proponents suggest that embracing circularity might pave the way for more resilient domestic production.
Despite its promise, several barriers currently inhibit widespread circular manufacturing in the US. Industry leaders have pointed to a lack of education on how to implement circularity within manufacturing processes, unclear data standards for assessing circularity, and insufficient economic incentives. Moreover, there is no consensus within the industry on how to measure circularity effectively—whether it should be assessed at the component level, such as on circuit boards, or at the final product level, such as laptops. This lack of alignment hinders collective progress.
Another challenge is the threat to R&D efforts, which are critical for innovation in circular electronics. Budget constraints, exacerbated by tariff-related economic pressures, may force companies to scale back their investment in research, potentially stalling advancements in sustainable manufacturing technologies.
Financially, circularity offers clear opportunities. Annually, an estimated $57 billion worth of metals like iron, copper, and gold are lost in electronic waste globally. Companies that can convert sustainable innovation into cost efficiencies and revenue growth stand to benefit considerably. Apple exemplifies this model, reporting that in its 2025 Environmental Progress Report, 24 percent of the materials in its recent products—including aluminium, cobalt, rare earth elements, and lithium—were recycled. This commitment supports the company’s circular goals and sets an industry benchmark.
The concept of circularity, however, is not yet implemented at a scale that would fully meet growing electronics demand. The urgency to rethink electronics manufacturing locations and methods appears to be rising only now, with tariff-induced cost pressures motivating companies to explore circularity as a cost-stabilising strategy.
Industry sentiment further underscores this transition. The association IPC’s “Wired for Change” survey found that nearly 60 percent of global electronics companies acknowledge the cost-saving and efficiency benefits of sustainability initiatives, including circular practices. This indicates a broad industry move toward more sustainable operations regardless of tariff fluctuations.
To support this transformation, IPC has initiated Evolve, a program designed to provide the electronics industry with guidance and best practices for sustainability. The initiative encourages sharing knowledge and resources to facilitate a collective shift toward circular manufacturing and highlights the importance of raising awareness among manufacturers about existing circular options and their associated cost savings.
The electronics ecosystem is interconnected, and navigating the path to sustainability requires coordinated efforts. Integrating circularity into product design and considering the complete lifecycle of electronic components is encouraged to create a durable and resilient manufacturing framework.
The Sustainable Brands report underscores these developments, indicating that the confluence of tariff-induced pressures and growing sustainability awareness is pushing the US electronics industry towards a future where circularity could play a central role in manufacturing and supply chain resilience.
Source: Noah Wire Services
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