The U.S. has accused China of engaging in unfair trade practices in the semiconductor sector, but is declining to impose additional tariffs on chip imports until at least mid-2027.
The Office of the U.S. Trade Representative on Tuesday released the findings of a nearly yearlong inquiry into China’s chip sector that was launched in the final weeks of the former President Joe Biden’s administration, with the expectation the matter would be resolved under President Donald Trump. In the intervening months, Trump struck a truce with Chinese President Xi Jinping to end a trade war that rattled global markets.
While no immediate duties were announced, the government floated the possibility of future ones. The initial tariff level will remain zero for 18 months, increasing on June 23, 2027 “to a rate to be announced not fewer than 30 days prior to that date,” USTR wrote in a Federal Register notice.
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