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US plans to impose tariffs on Chinese chips in mid-2027, USTR says

The U.S. will maintain a 0% tariff on Chinese semiconductors for 18 months before increasing rates in June 2027 to counter unfair trade practices, adding to an existing 50% tariff.

  • On December 23, 2025, the Office of the U.S. Trade Representative announced tariffs on Chinese semiconductors starting June 23, 2027, ending the current zero‑duty regime.
  • Following a year-long probe, the USTR concluded on December 23, 2024, that China used 'sweeping non-market policies' to capture global semiconductor market share.
  • The USTR said China targets every major segment of the semiconductor supply chain, including fabrication, design, assembly, testing and packaging, and the notice said this has severely disadvantaged U.S. companies and workers.
  • The Notice of Action specifies a phased implementation with an initial 0 per cent rate now and the tariff set to rise on June 23, 2027, announced 30 days before the deadline.
  • Seen broadly, the action targets China's industrial strategy, with the Office of the U.S. Trade Representative framing it as harming U.S. companies and workers across the global semiconductor supply chain after a year-long probe.
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China should be punished for using unfair tactics to dominate the semiconductor industry, but will wait 18 months before imposing tariffs, the US Trade Representative's office said on Tuesday. Beijing strongly denies the accusations, AFP reported.

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El Economista broke the news in on Tuesday, December 23, 2025.
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