US Government Divided Over Trump’s Semiconductor Tariffs and National Security Concerns
On Saturday, during the National Defense Forum, Commerce Secretary Gina Raimondo criticized Trump’s proposed semiconductor tariffs, calling it a “horrific idea” threatening national security.
Raimondo emphasized that issuing billions in federal grants to boost domestic chip production is essential for reducing the military and economy’s reliance on globally manufactured chips.
The Chips and Science Act, passed in 2022, allocated $52 billion in taxpayer funds for grants aimed at establishing new commercial chip factories and semiconductor research institutes.
Raimondo criticized the Trump semiconductor tariff suggestion when asked a question about Trump’s comments on a podcast before the election, showing dissatisfaction in his Chips and Science Act and US tariffs on Chinese semiconductors. The Commerce Secretary believes that the US tariff on semiconductors impact will be on the country’s national security and economy.
“If we’re in a place in this country where we can’t agree on national security and protecting the people of this country, then that’s a very dark place,” Raimondo said.
On Saturday, the Trump transition team characterized semiconductor tariffs as a support for US companies and boost national products and economy.
“President Trump has promised tariff policies that protect the American manufacturers and working men and women from the unfair practices of foreign companies and foreign markets,” said Brian Hughes, a spokesman for Trump’s team.
During Biden’s administration term, Gina put a lot of efforts to slow China’s technological achievement while boosting the government’s capacity to produce technology. The tensions have risen between the countries and the US tariffs on China semiconductor industry raised the alarm ever more.
Nevertheless, the US cannot deny that Taiwan – claimed as China’s territory – holds the most high-end computer chips.
Some computer chip companies’ executives expressed concerns that the federal grant program managed by Raimondo has been slow in distributing funds. In recent weeks, her agency has ramped up its announcements as the Biden administration seeks to allocate as much of the funding as possible before leaving office.
Executives at some of the chipmakers have voiced frustration that the federal grant program overseen by Raimondo has been slow to distribute cash, and despite the tariff impacts on semiconductors, it is still a better option.
“Most of the money will be allocated by the end of the year” Raimondo said Saturday. In November, The Commerce Department finalized nearly $11 billion in grants and contracts to US chipmaker Intel, the largest distribution to any company.
The week after, Intel CEO Pat Gelsinger, supporter of Trump’s Chips and Science Act, resigned amid the company’s ongoing difficulties that have led to restructuring moves.
Final Thoughts
The US government’s divided support on chipmaking and AI, on one side, and concerns over national security and semiconductor tariffs, on the other, underscores the need for one clear strategy. A balance must be achieved between technological leadership and protection of national security on the other.
Without a standardized approach, the US risks falling behind competitors like China and Russia, failing to shield sensitive areas of its defense and economy.
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