BIDEN LAUNCHES TRADE PROBE ON CHINESE CHIPS

New tariffs may target chips in cars, appliances, and telecom gear.

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The Biden administration on Monday announced a last-minute trade investigation into Chinese-made "legacy" semiconductors that could heap more U.S. tariffs on chips from China that power everyday goods from autos to washing machines to telecoms gear.

The "Section 301" probe, launched just four weeks before President-elect Donald Trump takes office on Jan. 20, will be handed over to his administration in January for completion, Biden administration officials said.

The effort could offer Trump a ready avenue to begin imposing some of the hefty, 60% tariffs that he has threatened on Chinese imports.

Departing President Joe Biden has already imposed a 50% U.S. tariff on Chinese semiconductors that starts on Jan. 1. His administration has tightened export curbs on advanced AI and memory chips and chipmaking equipment to China and also recently increased tariffs to 50% on Chinese solar wafers and polysilicon.