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U.S. plans to impose tariffs on Chinese semiconductors after a federal investigation concluded that Beijing has been using non-market policies to gain dominance in the sector, according to a public notice released by the Office of the U.S. Trade Representative (USTR).
The tariffs, which are currently set at zero, are scheduled to take effect on June 23, 2027, with the final rate to be announced no fewer than 30 days before that date, the USTR said on Tuesday.
USTR said that the probe found that China’s strategy to secure control of the global semiconductor supply chain "is unreasonable and burdens or restricts U.S. commerce and thus is actionable."
The investigation, launched in December 2024 and continued after President Donald Trump took office in January, concluded that Beijing has used "increasingly aggressive and sweeping non-market policies," including what officials described as "massive and persistent" state support and "wage-suppressing labor practices."
In 2024, the United States imported $642.44 million worth of chips from China, according to data from the Department of Commerce.
In response, China's Foreign Ministry said on Wednesday that Beijing firmly opposes the move, accusing Washington of misusing trade measures to "unreasonably suppress Chinese industries."
Ministry spokesperson Lin Jian warned that such actions could undermine global semiconductor supply chains, adding that the approach "hinders the development of all countries’ semiconductor industries and harms others while hurting itself."
"We urge the United States to quickly correct its erroneous practices," he said.
The USTR's move comes against a backdrop of prolonged tensions over trade and technology, following an October agreement in which U.S. President Donald Trump and Chinese President Xi Jinping reached a one-year truce in their trade dispute.
That deal included U.S. reductions in certain tariffs and China allowing rare earth exports, with additional tariff measures potentially serving as leverage if upcoming negotiations stall.
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