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Home – Political News – High Tariffs Could Harm American Semiconductor Industry. Here’s How to Get the Policy Right.

High Tariffs Could Harm American Semiconductor Industry. Here’s How to Get the Policy Right.

All Americans should congratulate President Donald Trump on his progress to insource more American manufacturing. That being said, tariffs are tricky things.

If a country imposes no tariffs, it may well see its domestic industry bleed away to other countries. America saw a lot of that in recent decades. However, raise tariffs too high and on the wrong sectors of the economy, and you risk pinching off growth by eliminating inputs that industry needs to grow.

Americans are at this delicate point right now with the semiconductor industry.

The Trump administration has taken sensible steps to build up semiconductor supply chains. Doing so is a cornerstone of its trade and national security agenda. It has used targeted Section 232 actions and policies to encourage domestic investment. This has strengthened America’s manufacturing base and improved the country’s strategic position.

By imposing sensible import limits, the administration has encouraged investment from other countries, which has helped improve trade and security relationships and created American jobs.

But it is important to remember that reshoring manufacturing requires time. The process is well underway, but imposing higher tariffs could end up harming the project instead of boosting it.

Victor........

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