The administration of US President Donald Trump said on Tuesday it will impose tariffs on Chinese semiconductor imports, citing Beijing’s “unreasonable” pursuit of dominance in the chip industry, but will delay the action until June 2027.
The tariff rate will be announced at least 30 days in advance, according to a filing that follows a year-long Section 301 investigation into China’s exports of “legacy” (older-technology) chips to the United States, initiated under former President Joe Biden’s administration.
The US Trade Representative said China’s targeting of the semiconductor industry for dominance is “unreasonable” and burdens or restricts US commerce, making it actionable under the probe.
China’s embassy in Washington opposed any tariffs. In a statement to Reuters, it said politicising and weaponising trade and technology issues and destabilising global industrial and supply chains would benefit no one and would eventually backfire, adding that Beijing would take all necessary measures to safeguard its lawful rights and interests.
The move preserves Washington’s ability to impose duties while seeking to dial down tensions with Beijing, as China has imposed export curbs on rare earth metals that global technology companies rely on and which China controls.
As part of negotiations with China to delay those curbs, Washington pushed back a rule that would restrict US technology exports to units linked to already-blacklisted Chinese companies.
The United States has also launched a review that could lead to the first shipments to China of Nvidia’s second-most powerful AI chips, Reuters reported, despite concerns among US China hawks who fear the chips could strengthen China’s military capabilities.
The chip industry is also awaiting a decision on a broader tariff investigation into global chip imports.
That separate probe, under the Section 232 national security statute, could add tariffs on Chinese semiconductors and on a wide array of electronics containing them from all countries. However, Reuters has reported that US officials have privately indicated the duties may not be imposed anytime soon.
Biden had already imposed an additional 50% tariff on Chinese semiconductors, which took effect on Jan 1, 2025.
