Saturday, May 25, 2024

US to increase tariffs on Chinese semiconductors by 100% in 2025 — officials say it protects the $53 billion spent on the CHIPS Act

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U.S. President Joe Biden has announced sweeping tariff increases across several Chinese imports, notably semiconductors, electric vehicles, batteries and battery components, solar cells and many components that make up our tech. According to a White House press release, tariffs on Chinese semiconductors will increase from 25% to 50% in 2025, effectively doubling its tax rate.

The semiconductor industry is seen as critical for any modern society to function, with appliances as simple as microwaves to advanced autonomous military drones and everything in between requiring them. The U.S. also sees it as a strategic resource: U.S. Commerce Secretary Gina Raimondo told the U.S. Congress that a Chinese seizure of TSMC, the largest semiconductor manufacturer globally and supplier of 92% of the chips in the United States, would devastate the U.S. economy.

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