The US government has signaled a tougher long-term stance on China’s semiconductor industry, announcing on Tuesday that tariffs on Chinese chip imports will rise starting June 2027, with the specific rate to be determined at least one month in advance.
According to a Federal Filing released by the Office of the US Trade Representative (USTR), the tariff rate on Chinese semiconductors will remain at zero until that date. However, the filing makes clear that this pause is temporary and part of a broader enforcement strategy.
“The United States Trade Representative (U.S. Trade Representative) has determined that China’s acts, policies, and practices are actionable under Section 301 of the Trade Act of 1974 and that appropriate responsive action includes taking tariff action now on semiconductors from China, with an initial tariff level of 0 percent, increasing in 18 months on June 23, 2027, to a rate to be announced not fewer than 30 days prior to that date,” the document stated.
The tariff move follows an inquiry launched a year ago, in which the USTR concluded that China has engaged in unfair trade practices in the semiconductor sector. The agency accused Beijing of systematically attempting to dominate the industry through state-driven measures.
“For decades, China has targeted the semiconductor industry for dominance and has employed increasingly aggressive and sweeping non-market policies and practices in pursuing dominance of the sector,” the filing said.
Despite the strong language, the decision to delay the tariffs for at least 18 months points to a calculated effort by the Trump administration to ease immediate trade tensions with Beijing while preserving leverage for future negotiations.
This approach aligns with recent diplomatic developments. In October, US President Donald Trump and Chinese President Xi Jinping reached a truce in the prolonged trade dispute, with Washington reducing certain tariffs and Beijing agreeing to allow exports of rare earth metals.
Still, the USTR made clear that the reprieve has a firm expiration date, confirming that tariffs are set to increase on June 23, 2027—reinforcing Washington’s warning that stronger trade measures remain on the table if concerns over China’s semiconductor practices persist.
PIXABAY PHOTO