US labels Chinese chips an economic threat, but delays tariff impact until 2027
In a new trade move against China’s semiconductor industry, the US Trade Representative Office said it had determined that Beijing’s drive for dominance in the sector is “unreasonable and discriminatory” and poses a direct threat to US commerce. In a formal notice of action filed with the Federal Register, the agency said the US is…
In a formal notice of action filed with the Federal Register, the agency said the US is implementing a tariff action on a wide range of Chinese semiconductors, with an initial rate of 0 per cent. The rate is set to rise in 18 months, on June 23, 2027, to a higher level that will be announced 30 days before the deadline.
Analysts said the delayed timetable underscores that the move is intended as much to signal resolve and retain leverage over Beijing as to deliver an immediate economic impact, with Washington opting to keep pressure in reserve rather than escalate tensions now.
The investigation, launched on December 23, 2024, concluded that China has employed “sweeping non-market policies” to capture global market share and displace foreign competitors. The USTR said China’s industrial plans target “every major segment of the semiconductor supply chain,” including fabrication, design, assembly, testing and packaging.
“China’s pursuit of its dominance goals has severely disadvantaged US companies, workers, and the US economy generally,” the notice said, citing lost sales, reduced competition, and the creation of dangerous economic dependencies.
The notice alleged China’s willingness to “weaponise dependencies” for economic coercion. It cited Beijing’s recent export restrictions on critical minerals like gallium, germanium and antimony. These materials are essential for chip production.
Inside the Nexperia crisis: the future of chip supply chain | China Future Tech webinar
Inside the Nexperia crisis: the future of chip supply chain | China Future Tech webinar
