The United States is not only imposing heavy sanctions on China to curb its advancements in semiconductor and artificial intelligence technologies but is also leveraging high tariffs on imported Chinese technologies to fund its own investments. Recently, it has been reported that the Biden administration plans to impose a fourfold increase in tariffs on Chinese electric vehicles. This tariff increase is not limited to vehicles alone; it extends to semiconductor products, batteries, battery components, and solar panels.
The U.S. is expected to apply up to a 50% tariff increase on these products. These increases are set to take effect in 2025, generating an estimated budget of $53 billion. This budget will be allocated to the CHIPS support program for semiconductors.
The CHIPS Act, as is well known, is a program that allocates $280 billion for semiconductor projects within the United States. Thanks to the tariffs imposed on China, $53 billion of this budget will be indirectly financed through these taxes.
This strategy aims to bolster the U.S. technological edge while slowing China’s technological progress. The Biden administration plans to use the revenue generated from these high tariffs to support domestic technology projects, thereby promoting local production and innovation. By doing so, the U.S. seeks to increase economic pressure on China while simultaneously strengthening its technological infrastructure.
In summary, the investments funded by the tariffs on Chinese imports are part of the U.S. effort to maintain its technological supremacy. The investments under the CHIPS program are expected to help the U.S. sustain its global leadership in critical areas such as semiconductors and artificial intelligence.