China Tariffs to Hit the Chip Sector

In a statement released Tuesday, John Neuffer, the SIA's president and CEO, said the organization was "disappointed and puzzled" that chips and related products remained on the list despite the industry's lobbying efforts.   

The administration initially imposed the tariffs after failing to reach agreement with China on a trade deal that would cut the bilateral trade deficit between the two countries, which was worth stood at about $375 billion last year. The administration has argued that imposing the tariffs is necessary absent a broader trade agreement that would curb Chinese policies it views as anticompetitive and better protect the intellectual property rights of U.S. firms.

Both the SIA and SEMI have expressed support for the administration's aims, particularly around intellectual property correction. However, both — like most U.S. trade groups, economists and analysts — oppose the tariffs, which they say will ultimately harm the global economy and penalize U.S. companies and consumers."

"We have made the case to the administration, in the strongest possible terms, that tariffs imposed on semiconductors imported from China will hurt America’s chipmakers, not China’s, and will do nothing to stop China’s problematic and discriminatory trade practices," Neuffer said. "We will continue to make this case and remain hopeful a sensible solution can be achieved that protects the interests of American businesses and consumers."In a statement released Tuesday, John Neuffer, the SIA's president and CEO, said the organization was "disappointed and puzzled" that chips and related products remained on the list despite the industry's lobbying efforts.   

The administration initially imposed the tariffs after failing to reach agreement with China on a trade deal that would cut the bilateral trade deficit between the two countries, which was worth stood at about $375 billion last year. The administration has argued that imposing the tariffs is necessary absent a broader trade agreement that would curb Chinese policies it views as anticompetitive and better protect the intellectual property rights of U.S. firms.

Both the SIA and SEMI have expressed support for the administration's aims, particularly around intellectual property correction. However, both — like most U.S. trade groups, economists and analysts — oppose the tariffs, which they say will ultimately harm the global economy and penalize U.S. companies and consumers."

"We have made the case to the administration, in the strongest possible terms, that tariffs imposed on semiconductors imported from China will hurt America’s chipmakers, not China’s, and will do nothing to stop China’s problematic and discriminatory trade practices," Neuffer said. "We will continue to make this case and remain hopeful a sensible solution can be achieved that protects the interests of American businesses and consumers."