“Trump’s Suggested 60% Tariffs Could Impede Growth in China’s Tech Sector”

# Tech Sector Calls for Diplomacy as Trump Tariffs Loom

As Donald Trump gears up for a return to the White House after the 2024 presidential election, the technology sector is on high alert regarding the extensive tariffs he pledged during his campaign. The possibility of a 60 percent tariff on all imports from China has sparked concerns throughout the tech industry, which is already dealing with the economic repercussions of past tariffs. Leaders in the industry are now advocating for increased diplomatic efforts, cautioning that the suggested tariffs could lead to severe consequences for both consumers and businesses.

## Effects of Previous Tariffs

During Trump’s initial term, tensions rose into a trade war with China as the U.S. imposed a variety of tariffs on Chinese imports. These tariffs aimed to penalize China for unfair trading methods, such as intellectual property theft, and to diminish the U.S. trade deficit. However, these tariffs also significantly impacted American businesses, especially in the tech space, which relies heavily on manufacturing from China.

While President Joe Biden has maintained and even broadened some tariffs, the tech sector has thus far successfully sidestepped the most damaging effects. Major consumer technology items like smartphones, laptops, and gaming consoles were spared from tariffs due to effective lobbying by tech firms. Nevertheless, the industry now faces the risk of losing these exemptions if Trump’s proposed 60 percent tariff takes effect.

## Possible Price Increases for Consumers

Should Trump’s tariffs be enacted, tech companies might incur costs that are four times greater than those experienced during his previous presidency. A report from the Consumer Technology Association (CTA) predicts that prices for widely-used tech products might surge drastically. Laptop prices could almost double, game consoles might climb by 40 percent, and smartphone prices could jump by 26 percent. Such steep price increases would likely alter the landscape of consumer electronics, making affordable, advanced technology less accessible for Americans.

The tech industry has consistently warned that completely severing ties with China is unfeasible. China constitutes 30 percent of global manufacturing, and relocating supply chains away from the country would necessitate significant time and investment. Redirecting resources to achieve decoupling from China could also hamper innovation, as companies would have reduced capital available for research and development.

## Potential Retaliation from China

Analysts concur that China is poised to retaliate if Trump’s tariffs are enforced. In the previous trade conflict, China countered U.S. tariffs with its own tariffs on American goods and limited access to critical resources, such as rare earth elements vital for technology manufacturing. If the trade war intensifies, China could further hinder U.S. access to these resources, potentially disabling the production of semiconductors and other essential components.

China has also signaled the possibility of restricting access to Taiwan, a crucial center for semiconductor production. With a significant portion of the world’s semiconductors coming from Taiwan, any disruption in trade in and out of the region could have dire consequences for the global tech industry.

## The Call for Diplomacy

In light of the potential ramifications of a full-scale trade conflict, numerous stakeholders in the tech industry are advocating for a more diplomatic strategy from the U.S. government. Rather than imposing tariffs to penalize China, experts propose that the U.S. focus on establishing trade agreements that hold China accountable for its unfair practices while ensuring access to essential materials and markets.

Jim McGregor, a strategist in the tech sector, asserts that the U.S. requires leaders who prioritize building bridges instead of erecting barriers. He cautions that isolating China might lead to divergent standards within the tech industry, impeding growth and innovation. McGregor also notes that many American companies are already attempting to move their manufacturing out of China, but this transition could take decades to finalize.

Mary Lovely, a senior fellow at the Peterson Institute for International Economics, concurs on the necessity of enhanced diplomacy. She argues that the prevailing strategy of imposing tariffs without a clear objective is ineffective. Instead, the U.S. should aim to create a new global value chain that decreases reliance on China while promoting decarbonization efforts and elevating labor standards among allied nations.

## Effects on Consumers

If Trump’s tariffs are enacted, consumers are likely to bear the brunt of the costs. Increased prices for tech products may result in diminished demand, negatively affecting Americans’ access to the latest technologies. This could, in turn, suppress innovation, as companies would have fewer motivations to create new, more energy-efficient products.

The CTA indicates that the expenses associated with decoupling from China could be staggering. Relocating manufacturing back to the U.S. would demand at least a decade, ten times the current workforce, and $500 billion in direct business investments. Even if the U.S. looked to treaty allies and trading partners to mitigate costs, the expense would still reach approximately $127 billion.

Small businesses, in particular, are expected to suffer significantly from the new tariffs. Many are already struggling to manage

Corning Being Examined for Antitrust Violations Due to Market Control in Gorilla Glass Manufacturing

# European Commission Probes Corning for Alleged Antitrust Infractions

The European Commission (EC) has initiated an investigation into Corning, a glass manufacturing giant based in the US, concerning potential antitrust violations linked to its leading product, Gorilla Glass. The EC is examining claims that Corning’s alleged restrictive business strategies, including exclusivity agreements, pricing tactics, and patent demands, may have hindered competition and innovation within the mobile phone screen sector.

## Allegations Made Against Corning

Corning’s Gorilla Glass is a prominent brand in the mobile device market, renowned for its toughness and resistance to shattering. However, findings from the EC’s inquiry suggest that Corning’s market position may not solely be attributed to the superior quality of its offerings. The EC alleges that Corning has engaged in practices that constrain competition by binding device manufacturers and finishers (entities that convert raw glass into final products) into exclusive or predominantly exclusive contracts.

### Principal Allegations:
1. **Exclusive Procurement Contracts**: The EC asserts that Corning has provided rebates and additional incentives to device manufacturers who commit to sourcing “all or nearly all” of their glass requirements from Corning. This could potentially obstruct rival glass manufacturers from establishing a presence in the market.

2. **Disclosure of Competing Offers**: Corning reportedly mandated device producers to disclose any competitive proposals from alternative glass manufacturers. This could grant Corning an undue advantage by permitting it to undercut competitors before they could secure contracts.

3. **Coercion of Finishers**: The EC further charges Corning with pressuring finishers to refrain from collaborating with competing glass suppliers and dissuading them from contesting Corning’s patents. This could restrict competition and innovation within the sector even further.

### Possible Market Consequences

The EC’s concerns revolve around the notion that Corning’s practices might have excluded competing glass manufacturers from significant portions of the market. This exclusion could lead to fewer choices for consumers, elevated prices, and diminished innovation in the mobile phone sector. The Commission expressed that such arrangements “may have barred rival glass producers from extensive segments of the market, resulting in decreased consumer options, increased costs, and stifled innovation to the detriment of worldwide consumers.”

Should the allegations be substantiated, Corning may face substantial penalties and be compelled to revise its business practices in Europe.

## Gorilla Glass: A Dominant Player

Gorilla Glass has become a synonym for resilient smartphone displays, akin to how brands like Xerox and Kleenex are associated with their products. Corning has persistently promoted its glass as being tougher and more resilient than that of its competitors, with each iteration of Gorilla Glass showcasing enhanced features.

For instance:
– **Gorilla Glass 4** was advertised as being “up to two times stronger” than any competing alternative.
– **Gorilla Glass 5** claimed the ability to withstand a 1.6-meter fall 80% of the time.
– **Gorilla Glass 6** presented improved resistance to cumulative damage from multiple drops.

These advancements have enabled Corning to uphold its role as the primary supplier for numerous smartphone manufacturers, including leading names like Apple.

## Corning and Apple: A Close Ties

The strong bond between Corning and Apple has been extensively documented. Apple has made substantial investments in Corning, including a $45 million investment in 2021 aimed at enhancing its US manufacturing capabilities. Corning’s glass products are essential to Apple’s devices, exemplified by the **Ceramic Shield** utilized on the iPhone 12, heralded for delivering four times better drop performance than earlier models.

Originally, the first iPhone was set to feature a plastic screen, but Steve Jobs famously insisted on the switch to Gorilla Glass shortly before the device’s launch. Since then, Corning has served as a vital supplier for Apple, and both companies have continued to collaborate on pioneering advancements in glass technology.

## What Lies Ahead?

The EC’s investigation is in its preliminary phases, and it is uncertain if Corning will incur any penalties or be required to alter its business practices. If the EC determines that Corning has breached antitrust regulations, the company could face substantial fines and be mandated to diversify its supply chain to encourage more competition.

Corning has yet to respond to the allegations, but the company is anticipated to defend its business operations by asserting that its success stems from the quality of its products rather than engaging in unfair competition.

The outcome of this investigation may significantly affect the mobile phone industry, especially in Europe, where antitrust authorities have taken a firm stance against monopolistic behaviors in recent years.

## Summary

The European Commission’s probe into Corning draws attention to the increasing scrutiny directed at large corporations that monopolize specific markets. While Corning’s Gorilla Glass has achieved widespread recognition in the mobile phone sector, the EC’s claims indicate that its market supremacy may not be entirely based on the quality of its offerings. Should the investigation conclude that Corning has participated in anti-competitive practices, it could lead to substantial ramifications for the company.

Starship Launch Anticipated to Take Place in the Coming Two Weeks

# SpaceX’s Starship: A New Chapter in Space Exploration

The Starship program from SpaceX has been garnering attention with its ambitious aspirations and pioneering milestones. The fifth full-scale test flight of the Starship rocket, occurring in October 2024, signified a crucial achievement for the organization. This test flight not only showcased the rocket’s performance but also laid the groundwork for prospective missions that might transform space transportation. With another test flight scheduled for November 2024, SpaceX is expanding the frontiers of what can be achieved in space exploration.

## A Noteworthy Fifth Flight

On a calm October morning, SpaceX’s Starship ascended from its launch site in South Texas, symbolizing the fifth full-scale test flight of the advanced rocket. This flight was significant for various reasons, particularly for the successful recovery of the rocket’s first stage, referred to as Super Heavy, utilizing mechanical arms—nicknamed “chopsticks”—to capture the booster as it returned to the launch site. This accomplishment was once deemed unlikely, but SpaceX made it happen, averting the necessity for an anomaly review by the Federal Aviation Administration (FAA). This enabled the company to proceed with its subsequent test flight.

The upper segment of the Starship rocket also excelled, splashing down at the designated point in the Indian Ocean after finishing its suborbital path. This success has facilitated SpaceX’s ongoing testing and enhancement of the Starship system, with the ultimate aim of attaining fully reusable rockets capable of supporting missions to the Moon, Mars, and beyond.

## What’s Upcoming: The Sixth Test Flight

SpaceX has revealed that the sixth test flight of Starship could be conducted as soon as November 18, 2024. This flight will adhere to a trajectory similar to the fifth test, but with various crucial enhancements and features added to the flight plan.

### Hardware and Software Enhancements

For the forthcoming flight, SpaceX has implemented numerous hardware and software improvements to the Super Heavy booster. These enhancements encompass:

– **Enhanced Redundancy**: The propulsion systems have been upgraded to include greater redundancy, ensuring the booster remains operational even if certain systems fail.
– **Increased Structural Integrity**: Essential regions of the booster have been bolstered to withstand the demands of launch and recovery.
– **Accelerated Propellant Offloading**: The time frame for offloading propellants from the booster after a successful catch has been reduced, boosting the efficiency of the recovery process.

On the software front, SpaceX has updated the controls and criteria for the booster’s ascent and return, integrating insights gained from the earlier test flight.

### Igniting a Raptor in Space

One of the most crucial enhancements for the forthcoming flight is the anticipated in-flight relight of one of Starship’s six Raptor engines. This represents a vital milestone in the progression of Starship, as it will illustrate the rocket’s capacity to relight its engines in space—an essential functionality for orbital missions and controlled reentry into Earth’s atmosphere.

Successfully reigniting a Raptor engine in space will also pave the way for commercial endeavors utilizing Starship. This could encompass the launching of larger Starlink satellites, which are too large for SpaceX’s current Falcon 9 rockets. These new Starlink satellites will enable direct-to-cell Internet capabilities, further extending SpaceX’s footprint in the telecommunications sector.

## Evaluating the Heat Shield

Another critical component of the upcoming flight will involve the evaluation of Starship’s heat shield. SpaceX intends to trial several innovative thermal protection materials and operational adjustments that will test the limits of the vehicle’s capabilities. This includes:

– **Innovative Secondary Thermal Protection Materials**: These materials will be evaluated for their performance during reentry.
– **Heat Shield Tile Excision**: Complete sections of heat shield tiles will be deliberately removed in regions where SpaceX is examining the possibility of catch-enabling equipment on future vehicles.
– **Elevated Angle of Attack**: The Starship will operate at a higher angle of attack in the last descent phase, imperiling the limits of flap control to collect data for forthcoming landing configurations.

These assessments will yield invaluable data to inform future designs and assist SpaceX in realizing its objective of making Starship completely reusable.

## A New Generation of Starship

The forthcoming flight will also signify the concluding mission for the current iteration of Starship. SpaceX has commenced work on the next generation of the vehicle, which will incorporate several substantial enhancements, including:

– **Revamped Forward Flaps**: These will enhance the vehicle’s aerodynamic efficiency during reentry and landing.
– **Expanded Propellant Tanks**: This will enable the rocket to carry a greater amount of fuel, extending its operational range and payload capacity.
– **Updated Tiles and Thermal Protection Layers**: These advancements will strengthen the vehicle’s resilience to the extreme temperatures experienced during reentry.

With these upgrades, SpaceX aims to boost the frequency of Starship flights, progressing towards a near-monthly flight schedule.