The Biden administration just announced a trade investigation into “legacy” semiconductors made in China today. And that could lead to more tariffs on chips from China that are used for cars, washing machines and telecommunications gear among other things. This “Section 301” investigation comes just less than a month before Trump takes office on January 20, 2025. The officials say the investigation will be handed over to the Trump administration for completion.
If anything, it just creates another avenue for Trump to impose heavy tariffs on China amid threats of a 60% tariff slap.
As for Biden, this builds on his rise in this space over the past few months:
The USTR says the latest probe will focus on mature technology chips that power cars, appliances, medical devices and other products. The probe is said to be based on evidence that “China is using anti-competitive, non-market policies to control global chip production”.
Once Trump takes office, the investigation will be handed over to his administration accordingly next month. The USTR will accept public comments on the study from January 6 ahead of plans for a public hearing on March 11-12 next year.
