Today, the U.S. Trade Representative (USTR), as part of its Section 301 investigation into China's trade practices, released a list of approximately $300 billion worth of Chinese goods, including a number in the semiconductor supply chain, that would face a tariff of up to a 25 percent. SEMI is working with members to assess the industry impact and will submit written comments and testify against the tariffs at a public hearing scheduled for mid-June.
SEMI encourages members to review the new list and determine the level, if any, of impact.
Today’s announcement follows last Friday’s tariff hike from 10 percent to 25 percent on $200 billion of imports from China. All told, the U.S. already has levied tariffs on $250 billion of Chinese goods that include materials and machines critical to semiconductor manufacturing. The expanded list released Monday would impose tariffs on essentially all imports from China. For its part, China has announced retaliatory tariffs, but more are likely coming.
SEMI has been steadfast in its opposition to these tariffs and other barriers to global commerce. Over the past year, SEMI has submitted numerous written comments and offered testimony on the damaging impact of tariffs to the semiconductor industry. While SEMI strongly supports efforts to strengthen intellectual property protections, we believe that the tariff increases will do nothing to address concerns over China’s trade practices but, instead, harm companies in the semiconductor supply chain by increasing business costs, introducing uncertainty and stifling innovation.
SEMI will continue tracking ongoing trade developments. SEMI members with questions should contact Jay Chittooran, global public policy manager at SEMI, at email@example.com.