SEMI Testifies Against U.S. Tariffs, Members Meet with Congressional Leaders Urging Trade Action
July 30, 2018 | SEMIEstimated reading time: 2 minutes
Two months after opposing $34 billion in U.S. trade tariffs on behalf of the U.S. semiconductor manufacturing industry, Jonathan Davis, global vice president of industry advocacy at SEMI, this week spoke out against an additional $16 billion in duties on Chinese goods. Testifying before the same U.S. interagency panel mulling the tariffs, Davis called for the removal of 29 tariff lines covering items critical to semiconductor manufacturing including machines and spare parts used to make, wafers, flat panel displays and masks.
In his testimony to the panel, Davis stressed that while SEMI supports stronger protections against the theft of valuable intellectual property (IP), tariffs do little to address U.S. concerns over IP loss. Over the past month, SEMI has also submitted written comments and opposed the tariffs in public testimony. The panel includes representatives from the U.S. Trade Representative (USTR), Departments of Treasury, Commerce, State and Defense, and the Council of Economic Advisers.
Tariffs group shot
Also testifying, Joe Pon, corporate vice president at Applied Materials, explained that the proposed tariffs will harm small and midsized companies and other U.S. business interests. Describing the tariffs as a tax on exports of high-value U.S. goods, Pon said the duties give non-U.S. firms an unfair competitive advantage.
In a parallel push to Davis’s testimony, SEMI, with more than 10 representatives from six member companies, met with 16 congressional offices this week to underscore the damage the tariffs would wreak on the U.S. semiconductor industry. The fallout would include higher operating costs, fewer exports and slower innovation. The tariffs would also curb industry growth and put thousands of high-paying, high-skill jobs at risk. SEMI pressed congressional leaders to reject the tariffs and support a push for congress to re-assert itself on trade policy.
Tariffs to Cost U.S. SEMI Members More than $500 Million
SEMI estimates that the second list of proposed tariffs, covering about $16 billion in Chinese goods, will cost its 400 U.S. members more than $500 million annually in additional duties.
The tariffs on $34 billion in Chinese goods, which took effect July 6, impact products such as test and inspection equipment as well as spare parts that enter the U.S. from China. That round of tariffs will cost SEMI member companies and estimated tens of millions of dollars annually.
SEMI Public Policy Team Asks Members to Review Tariff List
Looking ahead, SEMI encourages members to review the newly released $200 billion tariff list, determine any impact to their businesses and share their findings with SEMI’s public policy team.
The U.S. Trade Representative (USTR) has published the exclusion process for products subject to the China 301 tariffs. If your company’s products are subject to tariffs, you can request an exclusion.
Tariffs PQ
In evaluating product exclusion requests, the USTR will consider whether a product is available from a source outside of China, whether the additional duties would cause severe economic harm to the requestor or other U.S. interests, and whether the product is strategically important or related to Chinese industrial programs (such as “Made in China 2025”).
The deadline for submitting product exclusion requests to USTR is October 9, 2018. Approved exclusions will be effective for one year upon approval and retroactive to July 6, 2018.
Suggested Items
CIMS to Showcase Advanced Solutions at TPCA 2024
10/17/2024 | CIMSCIMS, a leading provider of inspection solutions for the electronics manufacturing industry, will be exhibiting at the Taiwan Printed Circuit Association (TPCA) 2024 exhibition in Taipei from October 23-25.
Vitronics Soltec Unveils Advanced Heavy Board Options for Reflow Soldering System
10/15/2024 | Vitronics SoltecVitronics Soltec, a leader in reflow soldering technology, announces the launch of new Heavy Board options for its industry-leading Centurion 1240 reflow soldering system.
The Government Circuit: Support for Defense Spending Takes Top Priority
10/15/2024 | Chris Mitchell -- Column: The Government CircuitFor those of us living in the world of politics and policy, the final few weeks before a major election are a little nerve-wracking. Who is going to win? How might the candidates’ campaign promises affect our industry and our strategies over the next few years? One thing I do know: No matter who wins the White House and control of Congress on Nov. 5, IPC will continue working with members of both major parties to advance policies that boost innovation, investment, and growth and ensure the electronics manufacturing industry’s long-term success. We must.
SEMICON Europa 2024 to Explore Innovations in Advanced Packaging and Fab Management for a Sustainable Future
10/15/2024 | SEMISemiconductor industry experts will convene at SEMICON Europa 2024, November 12-15 at Messe München in Munich, to explore the latest trends and innovations in advanced packaging and fab management.
Thinking Out of the Box: Pacific Northwest EMS Manufacturer Employs Successful Strategies With IPC
10/15/2024 | Michelle Te, IPC CommunityAllison and Chad Budvarson started Out of the Box Manufacturing, an EMS company in Renton, Washington, just one month after they were married in 2008. To stay competitive, they’ve utilized IPC’s workforce subscription and apprenticeship programs to train and maintain their staff. "Our relationship with IPC has evolved over the past several years," Allison says. "Initially, we saw IPC for its standards. But when I started attending the EMS Leadership Summit at APEX EXPO, I realized there was so much more to IPC, which opened more doors for us, creating growth and partnership opportunities I didn't realize were possible. For one, I like having frank conversations with EMS owners from other areas of the country, and I’m not worried they will steal my 'secret sauce.'"