Trump administration says tariffs on Chinese semiconductor imports are coming... in 2027
After a year-long investigation into China’s tactics to bolster its domestic semiconductor industry, the US has determined that its practices are “unreasonable” and is going to do something about that in 18 months.
The Trump administration’s office of the US trade representative said today that it plans to impose tariffs on imports of Chinese semiconductors at a rate higher than 0% to be decided at least 30 days before June 23, 2027.
“China’s pursuit of its dominance goals has severely disadvantaged US companies, workers, and the U.S. economy generally through lessened competition and commercial opportunities and through the creation of economic security risks from dependencies and vulnerabilities,” per the USTR’s notice of action.
These levies, should they come to pass, would apply to silicon, diodes, transistors, and more.
US markets were completely unbothered by this revelation, likely because there is no immediate action against Chinese semi companies and therefore no disruption to business-as-usual. This represents a punting of a contentious matter, similar to how China delayed restrictions on rare earth shipments as part of a deal between Presidents Trump and Xi following their October meeting.
It’s another sign of a thaw in the US-China relations over the hot-button issue of semiconductors after President Trump gave Nvidia the go-ahead to sell its H200 chips to buyers in the world’s second-largest economy.
