ChinaTalk Chips: Liberated? Trump’s Semis Tariff Gambit
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Apr 20, 2025 Bill Reinsch, a senior adviser at CSIS and former Under Secretary of Commerce, teams up with Jay Goldberg, author and host covering the semiconductor industry. They discuss Trump's tariff impacts on semiconductors, revealing four driving instincts behind the policy. The duo explores how these tariffs could boost China’s chip production and complicate U.S. alliances. They also debate whether major companies like Nvidia and Tesla are too vital to face consequences, shedding light on the tangled dynamics of global trade.
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Conflicting Goals of Tariffs
- Trump's semiconductor tariffs have multiple, conflicting goals including revenge, revenue, negotiation leverage, and boosting domestic manufacturing.
- The tariffs disproportionately burden poorer consumers, widening economic inequality in the U.S.
Chip Designers' Tariff Concerns
- Chip designers worry about losing access to the China market due to counter tariffs.
- Complex tariffs on GPUs and supply chain loopholes create confusion and inefficiencies.
Economic Barriers to U.S. Manufacturing
- Advanced semiconductor manufacturing is already returning to the U.S., exemplified by TSMC's Arizona plant.
- The challenge is economic, not technological; subsidies like $50B to Intel can overcome cost barriers.