JASPER, IN – Kimball Electronics says the US tariffs on certain goods imported from China could lead customers to move production offshore, leading to plant closures in the US.

The EMS firm sent a letter to the US Trade Representative indicating the possibility it would be forced to close one or two US manufacturing plants if the tariffs continue, according to reports. In the letter, Kimball Electronics CEO Don Charron urged the USTR to remove tariffs from components the firm imports, stating Kimball cannot absorb the additional costs.

Kimball has four assembly sites in the US, three in Indiana and one in Florida, according to the CIRCUITS ASSEMBLY Directory of EMS Companies.

According to reports, Kimball expects at least 13 US customers out of 39 to ask for production of their products to be moved to the firm’s Mexico plant in the next 18 months. The letter said Kimball would not be able to quickly change practices to respond to the tariffs because of the parts qualification process and worldwide shortages.

Register now for PCB WEST, the leading trade show for the printed circuit design and electronics manufacturing industry! Coming Sept. 11-13 to the Santa Clara Convention Center.

• Prev
• Next