The White House on Monday announced a trade investigation into “legacy” semiconductors made by China, less than a month before the new administration of president-elect Donald Trump takes power, that could impose additional tariffs on Chinese-made every day US consumer goods from cars to coffee makers.
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The probe falls under Section 301, a tool named after a part of the US Trade Act of 1974 that allows Washington to challenge imports on national security grounds. Given the last-minute timing, it will be up to the Trump administration whether to pursue the probe after taking over on January 20.
The investigation by the US Trade Representative could give Trump a launch pad to further his threat to impose up to 60 per cent tariffs on all Chinese imported goods that he outlined during his election campaign.
“This investigation underscores the Biden-Harris administration’s commitment to standing up for American workers and businesses, increasing the resilience of critical supply chains, and supporting the unparalleled investment being made in this industry,” said US Trade Representative Katherine Tai in a statement.
The trade agency added that “evidence indicates” that China seeks to dominate domestic and global chip markets through extensive anticompetitive and non-market means. These include setting and pursuing market share targets, it added.
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China’s acts, policies, and practices threaten to hurt the US and allied economies and undercut US economic security, it added.