Trump Wants to Kill the CHIPS Act — Says Chipmakers Are Coming to the USA to Avoid Tariffs
In a recent address to Congress, President Trump criticized the CHIPS Act, calling it “a horrible, horrible thing” and advocating for its repeal to redirect funds toward reducing national debt. The CHIPS Act, originally passed during President Biden’s administration, allocated substantial subsidies to semiconductor companies, aiming to bolster domestic manufacturing amid increasing tariffs on foreign goods. Trump’s stance emphasizes a shift from incentivizing investment through subsidies to relying on tariffs as a means to stimulate domestic production in the semiconductor industry.
- This pivot highlights a broader ideological divide on economic policy, where the emphasis is placed on protectionism rather than investment in innovation and infrastructure, potentially reshaping the future landscape of U.S. manufacturing.
- How might the shift from subsidies to tariffs affect the long-term competitiveness of the U.S. semiconductor industry in a global market?