SIA calls for the removal of 301 tariffs against China

SIA, a US semiconductor industry group, submitted a letter to the Office of america Trade Representative (USTR) in December. 1 calling for the removal of harmful tariffs on semiconductors which might be causing persistent chip shortages and slowing economic growth within the U.S. economy.

In accordance with SIA of their observations, 301 tariffs imposed on semiconductors and related products have caused an acute crisis no chips all over the world and have driven up prices, creating additional negative consequences for U.S. customers and manufacturers who purchase and produce electrical appliances, automotive medical equipment, and other U.S. industrial and technology products.

Semiconductors are the backbone of our modern economy. They power all digital devices, from smartphones and cars to computers and medical equipment. American chipmakers have greater than half of their market share worldwide. In 2020, U.S. semiconductor exports surpassed the $49 billion mark, making the chip manufacturing industry one in every of the highest five exporting U.S. manufacturing industries. Moreover, the US semiconductor industry also has a surplus in exports to China. Many of the factories that make up U.S. semiconductor manufacturers are situated in 18 different states. The U.S. semiconductor industry is believed to employ 277,000 American employees in well-paid jobs and create a further 1.6 million American jobs. US economy.

SIA said the emergence of the brand new coronavirus infection together with increasing shortages of basic components which might be spreading all over the world have caused huge problems for the whole semiconductor industry and plenty of challenges in the worldwide semiconductor industry. Section 301 has led to disruptions in the worldwide semiconductor supply chain as prices rise. SIA stated that the introduction of the US Section 301 tax increased the costs of electronic parts across the US by 25% and created an imbalance between demand and provide, and likewise caused a rise in the price of semiconductors, which further created an imbalance amongst semiconductor manufacturers and consumers in america, factories have closed and corporations are susceptible to losing jobs or reducing staff.

Moreover, SIA mentioned that semiconductor devices form the idea of quite a lot of medical devices. They’re the foremost tool within the fight against Covid-19. Eliminating Section 301 taxation will ensure the provision of medical devices that may help fight Covid-19.

About section 301

Within the context of the Biden administration’s wide-ranging investigation into U.S. China policy under Section 301, america is currently imposing penalties of 25 percent or more on greater than $300 billion in Chinese imports. China and these tariffs. Section 301 duties are along with normal import taxes. USTR implemented these tariffs after reviewing China’s mental property law, technology transfer policies and practices and publishing a report earlier this 12 months. USTR announced these Section 301 tariffs in 4 tranches that began in July of this 12 months. They’re still in force today.