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Commerce secretary blasts Trump's call of tariffs to replace chip grants

U.S. Commerce Secretary Gina Raimondo criticized former President Donald Trump's proposal to replace semiconductor manufacturing grants with tariffs, calling it "the most absurd thing" she had heard. During an interview on CNBC, Raimondo emphasized the importance of the CHIPS and Science Act, which allocates $52 billion to boost domestic semiconductor production. She argued that tariffs alone would not suffice to rebuild the U.S. semiconductor industry, which has seen significant offshoring over the years. Raimondo highlighted that the grants are crucial for incentivizing companies to invest in U.S. manufacturing, pointing out that without such incentives, companies would continue to invest abroad where costs are lower. She also noted that the U.S. currently produces only about 12% of the world's semiconductors, underscoring the need for substantial investment to enhance national security and economic competitiveness.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/politics/government/commerce-secretary-blasts-trump-s-call-of-tariffs-to-replace-chip-grants/ar-AA1vscmS ]