US plans to increase tariffs on Chinese semiconductor imports in 2027

(MENAFN) The United States government announced Tuesday that additional tariffs on Chinese semiconductor imports will be delayed until June 2027, with the specific rate to be determined at least 30 days before implementation, according to official filings.

Until that date, the tariff rate on Chinese chips will remain at zero. “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 filing stated.

The move follows a year-long inquiry in which the agency concluded that China engages in unfair trade practices in the semiconductor sector. “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.

The decision to delay new tariffs for at least 18 months is viewed as an effort to ease trade tensions between Washington and Beijing. In October, US President Donald Trump and Chinese President Xi Jinping agreed to a temporary truce in the trade war, which included the US reducing certain tariffs and China allowing exports of rare earth metals.

The filing confirms that the new tariffs will take effect on June 23, 2027.

MENAFN24122025000045017640ID1110521475