US trade officials find China’s semiconductor tactics unfair but will delay imposing new tariffs until June 2027, drawing criticism from Beijing.
WASHINGTON: US trade officials have determined that China employs unfair tactics to dominate the semiconductor industry. However, they will wait 18 months before imposing new punitive tariffs.
The US Trade Representative concluded that China’s targeting of semiconductors for dominance is “unreasonable and burdens or restricts US commerce”. The agency stated the findings are actionable under trade law.
The current zero tariff level will be increased in 18 months, on June 23, 2027. The specific rate will be announced at least 30 days prior to that date.
Beijing said it “firmly opposes” the move. Foreign ministry spokesman Lin Jian accused Washington of abusing tariffs to “unreasonably suppress Chinese industries”.
Lin said the US action “disrupts the stability of the global supply chain” and “harms others while hurting itself”. He urged the United States to quickly correct its practices.
The USTR’s “Section 301” probe concluded China used “increasingly aggressive and sweeping non-market policies”. These included “massive and persistent” state support and “wage-suppressing labor practices”.
The investigation was launched in December 2024 and continued under President Donald Trump’s administration. Trump has frequently used tariffs as a policy tool across various sectors.
The USTR did not respond to a query on the reason for the 18-month delay before tariffs take effect.