U.S. pushes additional tariffs on Chinese chips to June 2027

The Trump administration said that the United States will increase customs duties on semiconductor imports from China in June 2027 at a rate to be determined at least a month in advance. On file in the Federal Register on Tuesday.

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

As part of an investigation launched a year ago, the agency found China engaged in unfair trade practices in the industry.

“China has targeted the semiconductor industry for dominance for decades and has used increasingly aggressive and comprehensive non-market policies and practices to dominate the industry,” the office said in the filing.

The decision to delay new tariffs for at least 18 months indicates that the Trump administration is trying to cool trade hostilities between the United States and China.

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

U.S. President Donald Trump and Chinese President Xi Jinping reached a truce in their so-called trade war in October as part of a deal that included the United States dropping some tariffs and allowing Chinese exports of rare earth metals.

USTR’s filing on Tuesday states that tariffs will increase on June 23, 2027.

The notification is the next step in a process focused on older chips that began during the Biden administration under Section 301 of the Commerce Act.

The new 2027 date brings clarity to American companies, which say they are closely monitoring how U.S. tariffs might affect their business or supply chains.

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