North America

Trump imposes 15% tariff on key chip material to counter China

The Trump administration has imposed a 15% tariff on a key material used in semiconductor manufacturing, aiming to protect US chip firms from growing competition from China's industry. The move deepens tech-trade tensions between the two countries.

Clean room inside a semiconductor factory
Clean room inside a semiconductor factoryPhoto: Andrey Matveev / Pexels
BBC Business1 h ago

The Trump administration announced a new 15% tariff on a key raw material used in semiconductor manufacturing, saying the move is designed to shield US chipmakers from China's fast-growing industry.

The tariff marks the latest flashpoint in an intensifying tech-trade dispute between the two countries, following a series of earlier restrictions Washington has placed on advanced technology exports and imports.

Industry representatives warned that rising costs across the supply chain could eventually be passed on to consumers through higher prices for finished electronics. Analysts said a retaliatory response from Beijing could inject fresh uncertainty into global chip markets in the coming weeks.

TradeTechGeopoliticsNorth AmericaBBC Business
This article is an AI-curated summary of the original story published by BBC Business. The illustration is a stock photo by Andrey Matveev from Pexels and is not from the original story.

Read next