US Plans Additional Tariffs on Chinese Chip Imports

The United States has announced plans to impose additional tariffs on semiconductor imports from China, starting with a zero percent rate that will increase after 18 months, as part of efforts to address unfair trade practices in the global chip industry. The Office of the United States Trade Representative detailed the measure in a Federal Register filing on December 23, following a Section 301 investigation initiated in December 2024.

Under the plan, the new tariffs will take effect on June 23, 2027, with the specific rate to be announced at least 30 days in advance. These duties will apply on top of an existing 50 percent tariff on certain Chinese semiconductors, which was implemented on January 1, 2025, as a result of a prior Section 301 probe into forced technology transfer. The latest action targets a broad range of products, including diodes, transistors, amplifiers, and optical couplers under tariff code 8541, while avoiding overlap with items already covered under code 8542.

The decision stems from the USTR's findings that China's policies in the semiconductor sector are unreasonable and burden U.S. commerce. The investigation, which spanned nearly a year, concluded...