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U.S. moves ahead on tariffs with investigations into computer chips and pharmaceuticals
@Source: torontosun.com
The U.S. also is a major producer of semiconductors, but only in some areas. It relies heavily on imports from Taiwan and South Korea for certain kinds of advanced chips. In particular, Taiwan dominates advanced logic chip production at 92% of all fabrication capacity according to the International Trade Administration, with South Korea making 8%.
Products like laptops, smartphones and the components needed to make them accounted for nearly $174 billion in U.S. imports from China last year. The administration’s plans suggest that such electronics will still be taxed by previous (non-“reciprocal”) tariffs — and potentially under additional, sector-specific levies.
Although major computer chip makers like Taiwan Semiconductor Manufacturing Corp. are investing heavily in U.S. manufacturing facilities, partly due to incentives put in place during former President Joe Biden’s time in office, the costly process of changing entire supply chains would take years.
Separately, the Commerce Department said Monday that it was withdrawing from a 2019 agreement that had suspended an antidumping investigation into imports of fresh tomatoes from Mexico, effective in 90 days. It said the current arrangement failed to protect U.S. growers from “unfairly priced” imports of tomatoes. Most tomatoes from Mexico will be subject to a 20.91% tariff, it said.
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