The United States said China uses unfair tactics to dominate the semiconductor industry. However, Washington will delay tariffs until June 23, 2027. The USTR said current tariffs remain at zero for now.
The U.S. Trade Representative investigation concluded China’s policies “burden or restrict U.S. commerce and are actionable.” The agency will announce the tariff rate at least 30 days before implementation. Beijing strongly opposed the move, calling it “unreasonable and harmful.”
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China’s foreign ministry said the tariffs disrupt the global supply chain. They warned that the measures hinder development of semiconductor industries worldwide. The ministry urged the U.S. to correct what it called “erroneous practices.”
The probe began in December 2024 under President Biden and continued under President Trump. Trump has regularly used tariffs on sectors like steel, autos, and semiconductors. Officials cited China’s state support of private companies and labor practices as reasons for the action.
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Analysts say the 18-month delay may give time for negotiations or global adjustments. The U.S. aims to address aggressive Chinese policies while avoiding immediate supply shocks. Both nations remain engaged in talks to manage trade tensions.