US trade officials slam China’s semiconductor policies as unfair but will delay imposing new tariffs until June 2027, an 18-month postponement.
WASHINGTON: US trade authorities have condemned China’s policies to dominate the semiconductor industry as unfair but will delay imposing new tariffs for 18 months.
The US Trade Representative (USTR) concluded that China’s targeting of semiconductors “for dominance is unreasonable and burdens or restricts US commerce and thus is actionable.”
It stated the current tariff level of 0% will be increased “in 18 months on June 23, 2027 to rate to be announced not fewer than 30 days prior to that date.”
The USTR investigation found China employed “increasingly aggressive and sweeping non-market policies” to dominate the sector.
These included “massive and persistent” state support of private actors and “wage-suppressing labour practices.”
Officials launched the probe in December 2024 during the final weeks of President Joe Biden’s administration.
President Donald Trump’s administration extended the initiative after he took office in January.
Trump has been a prolific user of tariffs, unveiling sector-specific levies on steel, autos and other items.
The White House has jousted with Beijing but reached a broad truce with China after a major escalation last spring.
The USTR did not respond to a query on the reason for the 18-month delay before tariffs take effect.
