Trump’s chip tariff threat sparks pushback from auto industry to tech

The possible tax of up to 25 % has United competitors such as Tesla Inc. And General Motors Co. And Ford Motor Co. In expressing reservations. Industrial pressure groups have collected from the encryption council to innovate to the National Marine Manufacturers Association. Even Taiwan and the People’s Republic of China find a common issue, along with a predictable parts of the technology sector, including chips and wireless service providers.

The reason is that the chips are now in almost everything: refrigerators, microwave devices, tire pressure sensors, navigation systems, electronic handgrounds and sonar equipment, and of course smartphones and computers. The tariff threatens to supply lines with decorations and avoid consumer costs.

“There is a major incompatibility between the amount of chips that we use in this country in the various products and offer that has been created here in the United States,” Joan Fini, a partner and manager of ADVisors Capital Management, said in an interview. “A tax on these imports will simply increase the cost, and this is not a good thing for consumers.”

Examples include the Maritime Assembly, which warns that the impact will be felt by more than 1,300 factories facing higher expenses for necessities such as payment technology, engines and GPS systems.

The association said: “These systems are not optional luxuries – they are essential for safety, job and performance.” “Many components have no equivalent to the United States or only available from high -focus suppliers abroad.”

The concerns of the boat sector were among the comments from 154 of the stakeholders submitted to the Ministry of Commerce’s review about whether the definitions on the chips would be slaughtered as part of the Trump campaign to redraw global supply lines and enhance local manufacturing. The predictive technology sources have been weight, including semiconductor manufacturers in Taiwan Taiwan and Intel Corp, but reactions also fell from a wide range of sectors, along with commercial partners such as Japan and Brazil.

Companies, commercial groups and individuals who commented on the investigation of chips significantly indicated to support the president to deepen the American industrial base and expand the American workforce. However, most of them expressed concern about the potential consequences and urged us to make any fees that highlight as possible.

Combating, the files indicate uncomfortable through a set of industries on economic repercussions from targeting chips. Trump has so far cleaned many of these concerns and cited plans by a group of companies to invest in the United States, including Taiwan -based TSMC resolution to enhance its commitment to build factories near Phoenix.

White House spokesman Kush Desi said Trump is still committed to the security manufacturing manufacturing of American national security. “While the Ministry of Commerce completes its investigation in section 232, the administration is working to expand the scope of local mineral production, reduce regulations, and pay policies in support of growth,” Desai said in a statement. The Trade Department did not respond to a request for comment.

In his introduction, TSMC highlighted plans for six advanced connectors of semiconductor and two packaging facilities as well as a research center as part of an investment of $ 165 billion in Arizona, and is expected to create thousands of jobs. However, the company warned that import fees would make it difficult to provide these projects on the specified date, while slowing the United States’ efforts to expand domestic production of chips for wireless intelligence, artificial independence and self -rule.

“Additional definitions or other restrictions on semiconductors can reduce the profitability of the leading American companies by reducing resource options, increasing production costs, and reducing demand for products,” wrote Arizona, a subsidiary of TSMC.

In its presentation, Tesla urged coordination between the government and the industry to reduce the uncertainty that could disturb supply chains, noting its relations with Asia, Europe and Africa. “These partnerships allow us to focus on increasing the dominance of the United States in advanced manufacturing,” the company wrote. “The effects of these inputs where there is not enough local availability will put pressure on resources during a major moment in the global artificial intelligence race.”

Chipmaker Intel has warned that trade partners can respond to preventive measures that exclude American products. Intel seeks to unlike years of struggle by spending more than $ 100 billion to expand its local manufacture, and the company called on the administration to spare American -made American chips and any chips made abroad using American technology.

One of the common concerns broadcast by TSMC, Intel and others in the semiconductor industry that focuses on the risk that the chips -making equipment produced by foreign suppliers such as ASML Holding NV will strike import taxes. The ASML, based in the Netherlands -based ASML, is the only provider in the world for the most advanced chip making equipment, approximately $ 400 million. Adding definitions to increase the cost of preparing new American facilities.

ASML made notes to the Ministry of Commerce – but a “business company” mark has been developed and not available for public review. In her comments, she urged Intel to exempt such machines, noting that “the primary cost driver for Semiontuctor Fabs, which represents two -thirds of the total construction expenses, is equipment and machines.”

Vinnie said that replacing semiconductors produced abroad with local product would be very difficult.

She said, “It takes years to create an industrial infrastructure to make the creation of a semiconductor manufacturing facility as possible.” “At a time when we are trying to build an infrastructure for Amnesty International for Data Centers, the last thing you want to do is to put a large tariff on the most important inputs in these data centers.”

Commercial partners in the United States, who have already risen by the so -called mutual tariffs, have intercepted the idea of ​​targeting chips, after seeing the auto sector along with steel and aluminum imports that were struck with fees. Taiwan, which produces approximately 90 % of the most advanced semiconductors in the world, has highlighted the supplementary role of TSMC rats that surpass the leading chips in American chips designers Nvidia Corp. And Advanced Micro Devices Inc.

In its presentation, the Taiwanese government said that the customs tariff for semiconductors or relevant products from the island “will strongly weaken the ability of Taiwan to meet the demands of the American semiconductor industry in a timely manner.” “This would increase the costs of American companies, increase the prices of final products, reduce profitability and revenues, and ultimately weaken the ability of American companies to invest in research, development and innovation.”