China and the United States have an annual trade volume of more than 500 billion US dollars and are highly complementary. However, in 2018, trade wars broke out between the two sides. US President Trump announced a 25% tariff on 50 billion US dollars of goods imported from China. In addition to the $100 billion in commodity taxation preparations, China immediately announced a counterattack and imposed a 25% tariff on US products. No one is a winner in the Sino-US tariff war, but only hurt each other. The Semiconductor Industry Association announced today that it will support the cancellation of additional tariffs on semiconductor products imported from China. It believes that this will limit innovation and reduce US exports, causing US companies to spend an additional US$500 million annually. .
On Monday, more than 50 US lawmakers signed a joint letter to US Trade Representative Robert Wright Heze, calling for the elimination of tariffs on semiconductor supply chain products imported from China. This shows the importance of semiconductors in the modern economy. They believe that the imposition of tariffs does not help solve the trade problem with China.
The global semiconductor association SEMI subsequently issued a statement in support of the elimination of tariffs on semiconductor products imported from China. SEMI believes that the imposition of additional tariffs will ultimately reduce exports, limit innovation, and bring significant uncertainty. It is estimated that US tariffs will cost US companies an additional $500 million a year.
In addition, this move may also increase prices and put thousands of high-paying and high-tech jobs at risk. Last week, SEMI also testified before the US government agency group, urging the government not to impose tariffs on products in the semiconductor supply chain.
SEMI is the abbreviation of the Global Semiconductor Association. It has more than 2,000 members and more than 1.3 million professionals, many of whom are American companies. Therefore, SEMI’s statement can be understood as an attitude of the US semiconductor industry company to the tariff war.