US pushes back additional tariffs on Chinese chips until June 2027

The United States will increase tariffs on Chinese semiconductor imports in June 2027, at a pace to be determined at least a month in advance, the Trump administration said. in a filing in the Federal Register Tuesday.

But in the meantime, the initial duty rate on semiconductor imports from China will be zero for 18 months, according to the Office of the U.S. Trade Representative.

As part of an investigation launched a year ago, the agency found that China was engaging in unfair trade practices in the sector.

“For decades, China has targeted the semiconductor industry for dominance and has used increasingly aggressive and radical non-market policies and practices in an attempt to dominate the sector,” the bureau said in the filing.

The decision to delay the imposition of new tariffs for at least 18 months indicates that the Trump administration is seeking to calm any trade hostility between the United States and China.

Additional tariffs could also become a bargaining chip if future negotiations fail.

American President Donald Trump and Chinese President Xi Jinping reached a truce in the so-called trade war in October, as part of a matter this included the reduction of certain tariffs by the United States and China allowing exports of rare earth metals.

Tuesday’s USTR filing indicates that rates will increase on June 23, 2027.

This notice is the next step in a process focused on older chips that began under the Biden administration under Section 301 of the Trade Act.

The new 2027 date provides more clarity for U.S. companies that have said they are closely monitoring how U.S. tariffs could affect their operations or supply chains.

The tariffs are separate from other duties threatened by the Trump administration on Chinese chip imports under Section 232 of the law.