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The United States plans to install new tariffs on China’s semiconductors starting June 23, 2027, according to a Federal Register filing, adding another wrinkle to existing trade tensions between the superpowers.
According to the December 23 filing, the US will set an initial rate of 0% immediately, rising after 18 months to a rate to be announced at least 30 days before the implementation date. The new duty would be on top of the existing 50 percent tariff on China’s semiconductors already in place following a Section 301 investigation into forced technology transfer, the filing says.
The new tariff plan was the result of a Section 301 investigation by the Office of the US Trade Representative into China’s policies and practices related to semiconductor production and trade. The investigation was launched last December by the Biden administration.
A Section 301 investigation is one of several powers available to impose fees. These probes assess whether countries are engaging in unfair trade practices and may result in USTR imposing tariffs or other import restrictions; make changes to commercial agreements; or provide other relief, notes a Congressional Research Service report.
The USTR has chosen to implement new tariffs on China’s semiconductors because “the country’s targeting of the semiconductor industry for dominance is unreasonable and imposes or restricts US trade,” the filing says.
USTR added that the tariffs were intended to combat China’s “extraordinary control” of the semiconductor sector and the resulting harm to foreign competitors and buyers, including the US. The filing points to China’s use of policy guidance and mandatory directives for state-owned and private companies as a means by which the country exercises this control, creating an unbalanced business dynamic that stifles competition.
“China’s targeted dominance burdens or restricts US trade by undermining business opportunities and investments in the US semiconductor industry,” the filing says.
China’s policies also pose economic security risks as they create dependency and vulnerabilities for critical sectors, such as the military and automotive, that depend on a consistent supply of semiconductors.
The United States and China have sparred over tariffs and other trade policies for much of 2025, exacerbating growing tension between the countries over the past decade.
Both the Trump and Biden administrations have targeted China with multiple tariffs and investigations into trade practices. While the countries in October reached a truce escalating tensions that flared this year, the US has still maintained significant tariffs against China.
Beyond China, the US is also exploring potential tariffs on semiconductor imports from all countries, launching a Section 232 investigation into the sector earlier this year. Similar investigations have led to sector-specific tariffs on goods such as steel and auto parts.
