Latest on US-China Trade Feud
Tariff Struggles
- Trade Drought: The Port of Los Angeles has experienced a 10% drop in shipments compared to last year, with another 35% decrease predicted in the next fortnight [5]. Faced with these high tariffs, U.S. retailers seem to have halted imports from China [5].
- Job Losses: This hike may trigger job losses for up to 10 million people in China, depending on the trajectory of tariffs [2].
Advances in EUV Technology in China, Implications of Tariffs Already Inflicted: Daily Highlights According to SCMP
Tariff Disputes: The U.S. has set steep tariffs, peaking at 145%, on Chinese goods, provoking a retaliation with 125% tariffs on American products. This tit-for-tat has caused a substantial decrease in trade volumes between the nations [2][5].
Manufacturers under Fire
- Chinese manufacturers are grappling with increased costs and a loss of competitiveness due to tariffs. The subsequent decline in exports to the U.S. impacts both trade volumes and employment [5].
- Faced with these challenges, Chinese companies are exploring alternative markets or production sites to offset their losses [5].
EUV Chip Production Shifts
While data on EUV (Extreme Ultraviolet) chip production during this trade tension remains scant, the sensitive nature of semiconductor manufacturing could make it vulnerable to any supply chain disruptions, potentially including critical components for EUV chip production if the U.S.-China conflict affects the global semiconductor industry.
Rollercoaster Negotiations
- Regulatory Actions: The U.S. government continues to scrutinize and counteract non-reciprocal trade practices with strategies like the America First Trade Policy [3].
- Conflicting Statements: Despite differing announcements from both nations concerning trade talks, economists at Morgan Stanley anticipate continued dialogue leading to reduced tariffs [3]. The U.S. and China keep increasing tariffs, causing a considerable slump in Chinese exports to the U.S. [5].
- The conflict in the science of semiconductor manufacturing, particularly EUV chip production, might face disruptions due to the trade feud between the U.S. and China.
- The economic impacts of the trade war are not only felt in tariffs but also in the fluctuations in finance, as predicted by economists at Morgan Stanley.
- The escalating tariffs and general-news headlines about the U.S.-China trade feud are casting a shadow over the future of trade and technology collaborations.
- Amidst the pressures of increased tariffs, Chinese companies are forced to resume their strategic plans for trade and investment, exploring diversification of their markets and production bases.
- The zhejiang region, renowned for its contribution to technology and economy, is facing a challenging time as it navigates the conflicting trade policies between the U.S. and China, which could have far-reaching implications for its manufacturing and employment sectors.
