Posted on 04/25/2025 4:41:56 AM PDT by RoosterRedux
China appears to have quietly rolled back retaliatory tariffs of 125% on some semiconductors made in the US, according to details provided to CNN on Friday by three import agencies in the southern technology hub of Shenzhen, as Beijing tries to soften the blow of an ongoing trade war on its all-important tech industry.
The exemptions apply to integrated circuits, also known as microchips or semiconductors, according to the agencies. They found out about the exemptions, which have not been officially announced, on Thursday.
On April 12, China raised its reciprocal tariffs to 125% for all goods originating from the United States, in response to US President Donald Trump’s move to hike levies on Chinese goods to a sky-high 145%.
For months, Beijing has been projecting an air of strength and confidence in its ability to withstand an escalating trade war with the US. But these exemptions suggest it needs to roll back some levies on crucial items that it cannot make at home or source elsewhere. Besides semiconductors, China has decided to grant exemptions on some aircraft parts, including engines and landing gear, according to an aviation executive.
Semiconductors are an indispensable part of just about every electronic device. They are difficult to make because of the high cost of development and the level of knowledge required, meaning much of the production is concentrated among a handful of suppliers.
Although China has made strides in developing its own semiconductor industry, it is still highly dependent on imports of chips and chipmaking equipment from the United States, Taiwan, South Korea, Japan and the Netherlands. Last year, China imported $11.7 billion worth of semiconductors from the US, according to customs data.
Duncan Clark, chairman of technology investment advisory firm BDA, said the exemptions suggest China does not have “autonomy in chips.”
(Excerpt) Read more at cnn.com ...
China will NOT be able to eat their cheap merchandise.
They HAVE to sell it. Otherwise their production will have to shut down.
As of 7:49 AM, there is no pre-market movement in INTC, TXN, and GFS.
Correct and their avenues of cheating through Mexico, Canada, Vietnam, and the EU will be mostly or severely blockaded. So essentially China is screwed even if we lower ours tariffs.
It’s what I anticipated.
Trump offered the Chinese the chance to save face.
Now they can deal.
Now if Rand Paul could just figure it out....
Seems about right. "Leaders" need to maintain some "face" even in the flux of contests and changes in situations.
As an addendum to the above, it seems many US Democrats today simply don't know how or when to "save face." Proving thereby they are not leaders in the longer run, merely pretenders.
I am surprised that CNN aired this story.
Sounds like China wants them, need to cut off all shipments of these to China.
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