Peterson Institute for International Economics

Workers wait to greet President Joe Biden at Intel's Ocotillo Campus in Chandler, Arizona. Picture taken on March 20, 2024.

Photo Credit: Sipa USA/Alexandra Buxbaum

The CHIPS Act already puts America first. Scrapping it would poison the well for US investment.

President Donald J. Trump recently urged Congress to revoke the 2022 CHIPS and Science Act, touting tariffs as a better way to induce companies to manufacture semiconductors in the US. However, scrapping the CHIPS Act would threaten the current boom in US microchip investment. Instead, the Trump administration should make the legislation's funding more targeted and efficient, writes Martin Chorzempa.

The flags of United States and European Union are displayed on a screen.

NurPhoto/Jakub Porzyck

Photo Credit: NurPhoto/Jakub Porzyck

RealTime Economics

Modeling a US-EU trade war: Tariffs won't improve US global trade balance

Warwick J. McKibbin (PIIE; Australian National University) and Marcus Noland (PIIE)

March 24, 2025

Trade Talks

Paul Krugman talks trade, industrial policy, and Trump (Episode 206)

Chad P. Bown (PIIE)

March 16, 2025

RealTime Economics

Trump's trade war timeline 2.0: An up-to-date guide

Chad P. Bown (PIIE)

March 26, 2025

A cargo ship full of shipping containers is seen at the port of Oakland as trade tensions escalate over US tariffs, in Oakland, California, US. Picture taken on March 6, 2025.

REUTERS/Carlos Barria

Photo Credit: REUTERS/Carlos Barria

Op-Eds

The Incoherent Case for Tariffs

Chad P. Bown (PIIE) and Douglas A. Irwin (PIIE)

March 11, 2025

via Foreign Affairs

What's New

Shipping containers stand stacked at a port in Newark, New Jersey.

Will the world trading system survive Trump’s tariffs?

Alan Wm. Wolff (PIIE)

March 27, 2025

The CHIPS Act already puts America first. Scrapping it would poison the well for US investment.

Martin Chorzempa (PIIE)

March 27, 2025

Cecilia Malmström on the EU's new era of trade and geopolitical challenges: PIIE Insider LIVE highlights

Anjali V. Bhatt (PIIE) and Cecilia Malmström (PIIE)

March 20, 2025

Members of the Armed Forces of the Democratic Republic of the Congo (DRC) stand guard in the North Kivu province of the DRC. Picture taken on October 27, 2024.

Why a US-DRC minerals-for-security deal could backfire

Cullen S. Hendrix (PIIE)

March 24, 2025

PIIE Charts

A US-imposed 100 percent tariff on BRICS countries would cause lower GDP, higher inflation than otherwise for all

Warwick J. McKibbin (PIIE; Australian National University) and Marcus Noland (PIIE)

March 14, 2025

Fiscal and exchange rate policy, not tariffs, can reduce the trade deficit

Joseph E. Gagnon (PIIE)

February 25, 2025

Which imports from Canada and Mexico would be hit the hardest by Trump's tariffs?

Julieta Contreras (PIIE) and Mary E. Lovely (PIIE)

February 3, 2025

Trump's tariffs on Canada, Mexico, and China would cost the typical US household over $1,200 a year

Kimberly Clausing (PIIE) and Mary E. Lovely (PIIE)

February 3, 2025

The real turning point for Germany: Economic and security implications of the Merz chancellorship

April 2, 2025, 9:00 AM to 10:00 AM EDT

Moritz Schularick (Kiel Institute for the World Economy), Kori Schake (American Enterprise Institute) and Adam S. Posen (PIIE)

Apr

PIIE Insider LIVE

Economic statecraft and the Russia-Ukraine war

April 3, 2025, 10:30 AM to 11:00 AM EDT

Anjali V. Bhatt (PIIE) and Elina Ribakova (PIIE)

Apr

Shaping tomorrow's global economy: The transformative power and potential of digital trade

April 3, 2025, 1:00 PM to 2:00 PM EDT

Cecilia Malmström (PIIE), Martin Chorzempa (PIIE), Kat Duffy (Council on Foreign Relations), Joshua P. Meltzer (Brookings Institution) and Hanna C. Norberg (Trade Economista; TradeExperettes)

Apr