US to release result of probe into chip imports in 2 weeks
TURNBERRY : The Trump administration will announce the results of a national security probe into imports of semiconductors in two weeks, commerce secretary Howard Lutnick said on Sunday, as president Donald Trump suggested higher tariffs were on the horizon.
Lutnick told reporters after a meeting between Trump and European Commission president Ursula von der Leyen that the investigation was one of the 'key reasons' the EU sought to negotiate a broader trade agreement that would 'resolve all things at one time'.
Trump said many companies would be investing in semiconductor manufacturing in the US, including some from Taiwan and other places, to avoid getting hit by new tariffs.
He said von der Leyen had avoided the pending chips tariffs 'in a much better way'.
Trump and von der Leyen announced a new framework trade agreement that includes across-the-board 15% tariffs on EU imports entering the US.
Trump said the agreement included autos, which face a higher 25% tariff under a separate sectoral tariff action.
The Trump administration in April said it was investigating whether extensive reliance on foreign imports of pharmaceuticals and semiconductors posed a national security threat.
The probe, being conducted under Section 232 of the Trade Expansion Act of 1962, could lay the groundwork for new tariffs on imports in both sectors.
The Trump administration has begun separate investigations under the same law into imports of copper and lumber. Earlier probes completed during Trump's first term formed the basis for 25% tariffs rolled out since his return to the White House in January on steel and aluminium and on the auto industry.
Trump has upended global trade with a series of aggressive levies against trading partners, including a 10% tariff that took effect in April, with that rate set to increase sharply for most larger trading partners from Aug 1.
The US relies heavily on chips imported from Taiwan, something Democratic former President Joe Biden sought to reverse during his term by granting billions of dollars in Chips Act awards to lure chipmakers to expand production in the US.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
2 hours ago
- The Star
Zelenskiy praises Trump for 'clear stance' in shortened deadline for Russia
FILE PHOTO: U.S. President Donald Trump and Ukraine's President Volodymyr Zelenskiy attend a meeting on the sidelines of NATO summit in The Hague, Netherlands June 25, 2025. Ukrainian Presidential Press Service/Handout via REUTERS/File Photo (Reuters) -Ukrainian President Volodymyr Zelenskiy praised U.S. President Donald Trump on Monday for his "expressed determination" in calling for a shortened deadline in making progress for an end to Russia's war with Ukraine. "Clear stance and expressed determination by @POTUS – right on time, when a lot can change through strength for real peace," Zelenskiy wrote on the X social media platform. "I thank President Trump for his focus on saving lives and stopping this horrible war." In his nightly video address, Zelenskiy again praised Trump's "particularly significant" statement in the light Russia's "constant attempts to inflict pain on Ukraine" through air strikes on its cities. Ukraine, he said, saw the imposition of tough sanctions on Russia as a "key element" in ending the war. "Russia pays attention to sanctions, pays attention to such losses," he said. "Ukraine is ready to work productively with the United States, to work with President Trump to end this war with dignity and a secure, lasting peace." (Reporting by Ron Popeski and Oleksandr Kozhukhar; Editing by Leslie Adler and Chizu Nomiyama )
The Star
3 hours ago
- The Star
Economic Watch: China's manufacturing hub enhances economic and trade exchanges with Europe
GUANGZHOU, July 28 (Xinhua) -- With scorching temperatures gripping much of the northern hemisphere, demand for cooling appliances such as air conditioners, refrigerators, and fans has soared across Europe. This surge is being felt thousands of miles away in Shunde District of Foshan City, south China's Guangdong Province, often dubbed the "home appliance capital of China." In the first half of this year alone, Shunde saw a significant rise in exports of home appliances, with an average of 600 containers packed with such appliances leaving the district each day. "This is a golden opportunity for us to secure orders and expand into new markets," said Li Huihua, director of the international logistics customs and documentation center at Midea Group, one of China's leading home appliance manufacturers. "We tailor our product development and sales strategies to meet the European Union's standards for energy efficiency and smart features," he added. "For example, our air conditioners with no-wind sensation, which use AI technology to detect body position and adjust airflow automatically, have gained strong popularity among overseas customers," Li explained. This year, Guangdong Midea Refrigeration Equipment Co., Ltd. has exported nearly 10 billion yuan worth of home appliances, according to the company. In addition to traditional home appliances, a growing range of made-in-China products is gaining traction in the European market. Among them are electric bicycles from Guangzhou Sameway Electric Bicycle Co., Ltd., which feature motors and lithium batteries that provide faster speeds than standard bicycles while remaining lighter than traditional electric models. "In recent years, cycling has gained popularity across Europe, but many routes have steep slopes," said Hou Dezhi, general manager of the company. "After conducting in-depth market research overseas, we developed lithium-powered mountain bikes, with an annual production capacity of 80,000 units." In the first half of this year, the company exported lithium-powered mountain bikes and related products worth nearly 28 million yuan (about 3.92 million U.S. dollars) to Europe, marking a 35.6 percent year-on-year increase. Guangzhou Sameway Electric Bicycle Co., Ltd. is actively expanding its cross-border e-commerce operations and has established overseas warehouses in Poland, Germany and other countries, with a total inventory valued at over 80 million yuan. According to an official from Huadu Customs in Guangzhou, leveraging these overseas warehouses enables European consumers to place online orders and receive their purchases within 48 hours, as goods are shipped directly from local inventory. The growing popularity of products from Guangdong in Europe is underpinned by strengthening China-Europe ties, a well-developed international logistics network, and increasingly diversified economic and trade cooperation. In the first half of this year, Guangzhou Customs oversaw 175 China-Europe freight trains, including dedicated trains for automobiles and home appliances, shipping 16,000 TEUs totaling 88,000 tonnes and valued at 4.13 billion yuan. At present, the China-Europe freight train from Guangzhou International Port has formed a network of 18 routes, including 13 outbound and five inbound, covering 20 countries in Asia and Europe, with exported goods spanning automobiles, home appliances, clothing, daily necessities, and more. As one of China's three major international aviation hubs, Guangzhou Baiyun International Airport has launched more than 10 direct flights to European cities, including Paris, Amsterdam, Rome and Helsinki. In the first half of this year, customs at the airport supervised exports to the European Union worth over 27.5 billion yuan, marking a year-on-year increase of approximately 8 percent. China's continued efforts to expand opening up, combined with deepening cooperation between Chinese and European companies, have helped drive this growing wave of trade. For many European businesses, the Chinese market is indispensable. The German TÜV Rheinland Group, a leading independent testing, inspection and certification organization, generates around 30 percent of its global revenue from China. The group has provided services to over 300,000 local enterprises, helping "Made in China" products gain smooth access to international markets and playing a role of bridge in promoting China's foreign trade economy. Xia Bo, president of TÜV Rheinland Greater China, noted that as China's industrial innovation and technological capabilities continue to grow, more Chinese standards are expected to be elevated to international standards within the next five to ten years, helping China transition from a follower and peer to a global leader. As Chinese companies accelerate their global expansion, TÜV Rheinland is also continuously upgrading its services to support the internationalization needs of Chinese businesses. Xia added that economic and trade exchanges between China and Europe are becoming increasingly close and intertwined. The company's German headquarters now hosts visiting Chinese government and business delegations almost every week, exploring new avenues for cooperation. Such exchanges, he noted, are particularly insightful for both sides, especially in emerging technological fields. According to the "2024 Business Confidence Survey Report" published by the European Chamber of Commerce in China, 73 percent of respondents are willing to expand their current operations in south China, and 61 percent believe that doing business in south China is relatively easy. "The South China Chapter has over 250 member companies, all of which highly praise the region's business environment," said Klaus Zenkel, vice president of the EU Chamber of Commerce in China and chairman of the European Chamber South China Chapter, who has lived in Guangdong for more than 20 years. Recently, Zenkel took part in the Shenzhen-EU SME Government-Business Exchange Meeting alongside dozens of European SMEs' representatives. He noted that European companies across various industries are growing in tandem with the Chinese market. Shenzhen, renowned for its dynamic private economy and thriving small and medium-sized enterprises, boasts a complete industrial chain, Zenkel said, adding that collaboration between European SMEs and Shenzhen's AI companies is set to accelerate rapid technological iteration and application. In the first half of this year, the total import and export value of Guangdong, one of China's major manufacturing hubs, with the European Union reached 542.43 billion yuan, marking a year-on-year increase of 7.2 percent. The exports amounted to 429.85 billion yuan, up 5.7 percent year on year, while imports totaled 112.58 billion yuan, up 13.1 percent year on year, according to local customs.
The Star
4 hours ago
- The Star
Trump eyes 'world tariff' of 15-20% for most countries
A container is loaded onto a cargo ship while docked at a port under the Port Authority of Thailand, following the announcement that U.S. President Donald Trump would impose tariffs of 36% on goods from Thailand starting on August 1, in Bangkok, Thailand, July 8, 2025. REUTERS/Athit Perawongmetha/File Photo TURNBERRY, Scotland (Reuters) -President Donald Trump said on Monday most trading partners that do not negotiate separate trade deals would soon face tariffs of 15% to 20% on their exports to the United States, well above the broad 10% tariff he imposed in April. Trump told reporters his administration will notify some 200 countries soon of their new "world tariff" rate. "I would say it'll be somewhere in the 15 to 20% range," Trump told reporters, sitting alongside British Prime Minister Keir Starmer at his luxury golf resort in Turnberry, Scotland. "Probably one of those two numbers." Trump, who has vowed to end decades of U.S. trade deficits by imposing tariffs on nearly all trading partners, has already announced higher rates of up to 50% on some countries, including Brazil, starting on Friday. The announcements have spurred feverish negotiations by a host of countries seeking lower tariff rates, including India, Pakistan, Canada, and Thailand, among others. The U.S. president on Sunday clinched a huge trade deal with the European Union that includes a 15% tariff on most EU goods, $600 billion of investments in the U.S. by European firms, and $750 billion in energy purchases over the next three years. That followed a $550-billion deal with Japan last week and smaller agreements with Britain, Indonesia, and Vietnam. Other talks are ongoing, including with India, but prospects have dimmed for many more agreements before Friday, Trump's deadline for deals before higher rates take effect. Trump has repeatedly said he favors straightforward tariff rates over complex negotiations. "We're going to be setting a tariff for essentially, the rest of the world," he said again on Monday. "And that's what they're going to pay if they want to do business in the United States. Because you can't sit down and make 200 deals." Canadian Prime Minister Mark Carney said on Monday trade talks with the U.S. were at an intense phase, conceding that his country was still hoping to walk away with a tariff rate below the 35% announced by Trump on some Canadian imports. Carney conceded this month that Canada - which sends 75% of its exports to the United States - would likely have to accept some tariffs. (Additional reporting by Andrew MacAskill in Turnberry, Andrea Shalal in Edinburgh and William James in LondonEditing by Rod Nickel)
