In recent times, the United States, which is preparing to impose significant taxes on automotive and semiconductor products imported from China, will create a substantial budget for its own investments. While imposing heavy embargoes on China to hinder its progress in semiconductor and artificial intelligence technologies, the U.S. is simultaneously generating resources for its investments by applying high taxes on imported Chinese technologies.
The Intriguing Tax Policy of the U.S.
Recently, it was brought to light that the Biden administration would impose a fourfold tax on Chinese electric vehicles. Tax increases are not limited to vehicles alone. Semiconductor products, batteries, battery components, solar panels, and many other products are also in line for tax hikes.
The U.S. is expected to apply tax increases of up to 50% on these products. The increase will take effect in 2025, resulting in the formation of a $53 billion budget. The U.S. will allocate this budget to the CHIPS (Creating Helpful Incentives to Produce Semiconductors) chip support program.
It is known that the CHIPS law has initiated a program allocating a budget of $280 billion to semiconductor projects within the United States. Thanks to China, $53 billion of this will indirectly be covered by taxes.
