Washington: The Trump administration announced plans to impose tariffs on Chinese semiconductor imports, citing Beijing’s aggressive pursuit of dominance in the chip industry. The tariffs, however, will be delayed until June 2027, with the exact rate to be announced at least 30 days in advance.
The announcement follows a year-long investigation under Section 301 of US trade law, initiated during the Biden administration, into unfair trade practices involving China’s exports of older, or ‘legacy,’ semiconductor technology to the United States. US trade officials argued that China’s strategy to dominate the semiconductor sector unfairly restricts American commerce.
The delayed tariffs allow Washington to maintain leverage over Beijing while negotiating to ease tensions, particularly amid Chinese restrictions on rare earth metals that are essential to global technology companies.
The US has also postponed a rule that would limit tech exports to units of already-blacklisted Chinese companies, and it is reviewing potential approvals for shipments of advanced Nvidia AI chips to China, despite concerns from US lawmakers that such chips could enhance China’s military capabilities.
The semiconductor industry is also closely watching a separate, broader tariff investigation under Section 232, which focuses on national security. This review could impose additional tariffs on Chinese semiconductors and other electronics containing them from all countries, though US officials indicate action may not be imminent.
Earlier this year, the Biden administration imposed additional tariffs on Chinese semiconductors as part of its ongoing efforts to counter China’s trade practices and protect the US technology industry.
