Abstract: Some analysts pointed out that the biggest impact of the new US tariffs in the technology industry is semiconductors and related products. The SIA estimates that the US imports from China will be US$2.5 billion in 2017. After the implementation of tariff sanctions, it is very likely that this 2.5 billion All production capacity is transferred to the United States.
According to the Wall Street Journal, the Office of the US Trade Representative Office (USTR) has launched a two-day public hearing on July 24th for a '25% tariff on Chinese imports.' It is reported that the $16 billion imported products are mainly electronic products and other accessories.
According to reports, the hearing will be held from 9:30 am to 5:30 pm on July 24, 2018, and from 9:30 am to 12:00 pm on July 25th. Business representatives include Applied Materials, Cree, Inc., SolarWorld Americas, Inc, Logitech, Inc., etc. Industry associations attending the hearing include the International Semiconductor Industry Association (SEMI), SIA, and the Consumer Technology Association ( CTA) and so on.
For a long time, Trump has threatened to impose tariffs on Chinese exports to the United States on the grounds of 'unfair trade practices' and 'China's infringement of US intellectual property rights.' On July 6, the Trump administration officially announced $34 billion to China. The goods are subject to a 25% tariff, including machinery, accessories, electronics, agricultural ploughs, machine tools and communications satellites. Meanwhile, the United States also plans to impose a 25% tariff on US$16 billion worth of Chinese imports of electronic products and other accessories. This time, the two-day hearing is around the $16 billion product.
Because the vast majority of the $16 billion products are semiconductors and related products, this will have a major impact on the US semiconductor and related industries. According to USTR's Section 301, China Import Goods Tax List, for remote control, automatic The printed circuit components of the vending machine are listed among them. In addition, many parts used on the circuit board such as resistors and capacitors are also subject to tariffs.
Some analysts pointed out that the biggest impact of the new US tariffs in the technology industry is semiconductors and related products. The SIA estimates that the US imports from China will be US$2.5 billion in 2017. After the implementation of tariff sanctions, it is likely that this US$2.5 billion capacity will be generated. All transferred to the United States.
The Federal Reserve (FED) announced on July 17 that the capacity utilization rate of semiconductors and related electronic components jumped to 76.4% in June 2018 from 75.4% in May, lower than the 1972-2017 average (78.6%). The monthly index increased by 9.9% (monthly by 1.7%) to 163.0. In June 2018, the US semiconductor and electronic components manufacturing employment reported 370,900, a record high since February 2016, and the fifth consecutive month of expansion.
However, the $16 billion list of sanctions may be misunderstood. The US Semiconductor Industry Association (SIA) hopes that the Trump administration will remove 39 product categories from a series of Chinese imports worth about $16 billion. In the submission, SIA said that because most of the semiconductor products imported from China by the United States are designed or manufactured in the United States and then shipped to China for testing and packaging, the statistics on semiconductor imports from China are misleading.
In fact, the Sino-US trade war has been condemned by all walks of life since its opening. SIA has expressed concern about this hearing: 'Tarms will weaken the technological leadership of the United States, leading to job losses and consumers of US semiconductor products and US semiconductor manufacturers have had an adverse effect. ' At the same time, the National Retail Federation (NRF) and 65 business groups warned USTR on the 24th that tariffs on Chinese imports would not produce the results that the government would like to see.
The South China Morning Post also reported that Charlie Souhrada, vice president of the North American Food Equipment Manufacturers Association, said at a public hearing on the 24th that if China is no longer a viable supplier, a complex supply chain may take up to five years to rebuild. .
SIA also submitted a statement to the US International Trade Commission: 'The US semiconductor industry's penalties are unreasonable. The proposed tariffs cannot contain China's discriminatory trade and illegal intellectual property rights, and force China to change its behavior.' As an alternative, SIA urges the United States The government 'takes more effective and targeted policies' and makes greater use of the World Trade Organization and multilateral actions with allies to solve 'China's industrial policy issues'.
Analysts pointed out that the Sino-US trade war is bound to be a 'double loser' situation, which is adversely affecting both China and the United States and the global economy. The United States will eventually 'satisfy its own fruit.' After the hearing of the hearing, the Harvest XQ Global Winner The quotation system showed that the Philadelphia Semiconductor Index showed a high and low level on July 24, and fell 1.09% at the end, closing at 1,346.58 points, the largest single-day decline since July 11.