Biden administration announces last-minute trade probe targeting legacy Chinese chips

The Biden administration has just announced a trade investigation into “legacy” Chinese-made semiconductors today. And that could see it lead to more tariffs on chips from China that are used for autos, washing machines and telecoms gear among other things. This “Section 301” probe is coming just less than a month before Trump takes office on 20 January 2025. The officials say that the investigation will then be handed over to Trump’s government for completion.

If anything, it just creates another avenue for Trump to impose hefty tariffs on China amid threats of a 60% tariff slap.

As for Biden, this builds on his escalation in this space over the last few months:

• US reportedly finalises steep tariffs on China, with many to begin on 27 September
• Latest US trade restrictions reportedly set to hit China’s semiconductor industry
• Biden administration to unveil more tariffs in parting gift to China

The USTR says that the latest probe will target mature-technology chips that power autos, appliances, medical devices, and other goods. The probe is supposedly based on evidence that “China is using anti-competitive, non-market policies to dominate global chip production”.

Once Trump takes office, the investigation will be handed over to his administration accordingly next month. The USTR will be accepting public comments on the probe as of 6 January before plans for a public hearing on 11-12 March next year.

This article was written by Justin Low at www.forexlive.com.