President Donald Trump has been quoted as saying he will impose at least a 25% tariff on chips imported into the United States. This is an initial tariff that will be increased until chip manufacturers open their production plants in the United States.
Previously, he said he wanted to impose up to 100% tariffs on chips, the majority of which are manufactured in Asian countries such as Malaysia, Taiwan and China. The real target of the tariffs is manufacturers of old technology chips needed by the automotive and electronics industries, which are now dominated by China.
Among the final orders carried out by the Joe Biden administration is an investigation into the Chinese chip production industry. In the investigation carried out, 2/3 of local companies use old chips imported from China. These chips are used in washing machines, vehicles, telecommunications equipment and even some military equipment. More than half of the manufacturers said they did not know the origin of the chips used in their products.
The United States says that the production of legacy chips in China receives government assistance that will have an impact on other manufacturers who cannot compete with the low prices offered.