U.S. plans tariffs on Chinese chip imports starting in 2027

On Tuesday, the Trump administration said it will put tariffs on Chinese semiconductor imports starting in June 2027. The tariff rate has not been shared yet and will be announced at least one month before the tariffs begin, as reported by Reuters.

These Chinese semiconductor imports are currently not taxed by the United States. The decision follows a year-long investigation into Chinese chip imports into the U.S. The investigation was started by the Biden administration and led by the U.S. Trade Representative.

Chinese chip investigation

The Office of the U.S. Trade Representative said China is unfairly targeting the semiconductor industry. “China’s targeting of the ⁠semiconductor industry for dominance is unreasonable and burdens or restricts U.S. commerce ‍and thus ⁠is actionable,” the agency said in its release, as noted in the report by Reuters.

U.S.-China trade truce

The probe started last year after the USTR took up the investigation in December, with the probe initiating under Section 301 of the Trade Act of 1974–which allows the US to impose tariffs on countries which indulge in ‘unfair’ trade practices. as stated in the report by TipRanks.

In October, a trade deal was reached between Trump and Chinese President Xi Jinping, with reports suggesting that the delayed implementation of tariffs could be a homage to the trade ‘truce’, to be later used if US- China relations deteriorate.

FAQs

Q1. When will the U.S. start tariffs on Chinese semiconductors?

The U.S. will begin imposing tariffs on Chinese semiconductor imports in June 2027, with the rate announced at least one month before.

Q2. Why is the U.S. adding tariffs on Chinese chips?

The tariffs follow a U.S. investigation that found China’s actions in the semiconductor industry unfairly harm U.S. trade.