Trump Administration delays new China chip tariffs until June 2027

President Donald Trump’s administration announced on Tuesday (December 23) that it will impose new tariffs on Chinese semiconductor imports, however, the enforcement of these duties has been delayed until June 2027.

This has essentially provided a significant window for ongoing trade negotiations. According to a report by news agency Reuters, the decision follows a year-long “Section 301” investigation, which was launched under the Biden administration. This probe concluded that Beijing’s pursuit of dominance in the “legacy” chip market is “unreasonable” and restricts US commerce.The US Trade Representative (USTR) stated in its filing that China’s state-backed targeting of the semiconductor industry constitutes an unfair trade practice that requires federal action.

While the exact tariff rate is yet to be determined, officials said that the announcement of the specific figures will be made at least 30 days before the 2027 implementation date.“China’s targeting of the semiconductor industry for dominance is unreasonable and burdens or restricts US commerce and thus is actionable," the USTR release noted.

China chip tariffs delay can reduce tensions

With the delay, the Trump administration is essentially preserving its leverage while attempting to de-escalate immediate tensions.

China recently imposed export curbs on rare earth metals that are used in chipmaking, space tech manufacturing. China controls the vast majority of the global supply. In exchange for a delay in China's metal curbs, Washington has pushed back rules that would have further restricted US tech exports to blacklisted Chinese firms.This latest move adds to another layer of existing duties; former President Biden had already implemented an additional 50% tariff on Chinese semiconductors that went into effect on January 1, 2025.