US delays additional tariffs on Chinese chips until June 2027

ISTANBUL

The US government announced on Tuesday that it will raise tariffs on Chinese semiconductor imports in June 2027, at a rate to be decided at least one month in advance.

The tariff rate on the Chinese chips will be zero until that date, a Federal Filing from the US Trade Representative (USTR) said.

"The United States Trade Representative (U.S. Trade Representative) has determined that China’s acts, policies, and practices are actionable under Section 301 of the Trade Act of 1974 and that appropriate responsive action includes taking tariff action now on semiconductors from China, with an initial tariff level of 0 percent, increasing in 18 months on June 23, 2027, to a rate to be announced not fewer than 30 days prior to that date," the filing said.

As part of an inquiry that began a year ago, the agency claimed China engages in unfair trade practices in the industry.

“For decades, China has targeted the semiconductor industry for dominance and has employed increasingly aggressive and sweeping non-market policies and practices in pursuing dominance of the sector,” it said.

The decision to postpone fresh tariffs for at least 18 months suggests the Trump administration is attempting to defuse trade tensions between Washington and Beijing.

In October, US President Donald Trump and Chinese President Xi Jinping agreed to a truce in the so-called trade war, with the US lowering some tariffs and China allowing exports of rare earth metals.

According to the USTR's filing, tariffs will climb on June 23, 2027.