Semiconductor industry analysts and market watchers expressed concern after U.S. President Donald Trump announced that the U.S. would impose 25% tariffs on $50 billion of Chinese goods, including many products in the semiconductor supply chain.
U.S. chip firms and their suppliers largely oppose the tariffs and the escalation of a trade war between the world’s two largest economies. The ultimate result, many fear, will be decreased sales of electronic products and components.
The Trump administration has argued that the tariffs are necessary to close a $375 billion trade deficit with China and counter Chinese policies deemed harmful to U.S. industry, including required technology transfers and lax intellectual-property protection.
Most of the stakeholders and various companies involved in the electronics supply chain, have voiced support for the administration’s efforts to protect intellectual property, but said that it does not believe the tariffs will do anything to address U.S. concerns over China’s trade practices.