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USTR announces tariffs following Section 301 investigation into China's semiconductor industry practices

Tariffs will increase in 18 months—on June 23, 2027

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december 23, 2025

The Office of the United States Trade Representative (USTR) today released a notice announcing that China’s acts, policies, and practices targeting the semiconductor industry are actionable under Section 301 of the Trade Act of 1974.

The USTR has determined that appropriate responsive action includes imposing tariffs on semiconductors from China, starting at 0% and increasing on June 23, 2027, to a rate that will be announced at least 30 days prior.

Background

The USTR in December 2024 initiated a Section 301 investigation into China’s targeting of the semiconductor industry for dominance, including its incorporation into critical industries (read TradeNewsFlash). The investigation found China’s practices to be unreasonable and burdensome to U.S. commerce, leading to the decision to impose tariffs.

For more information, contact a professional with KPMG Trade & Customs services:

Andrew Siciliano
Partner, U.S. & Global Practice Leader

E: asiciliano@kpmg.com

Doug Zuvich
Partner

E: dzuvich@kpmg.com

Irina Vaysfeld
Principal

E: ivaysfeld@kpmg.com

John L. McLoughlin
Principal

E: jlmcloughlin@kpmg.com

Luis (Lou) Abad
Principal

E: labad@kpmg.com

George Zaharatos
Principal

E: gzaharatos@kpmg.com

Christopher Young
Principal

E: christopheryoung@kpmg.com

Amie Ahanchian
Principal

E: aahanchian@kpmg.com

Gisele Belotto
Principal

E: gbelotto@kpmg.com

Steve Brotherton
Principal

E: sbrotherton@kpmg.com

Jessica Libby
Principal

E: jlibby@kpmg.com

Dawn Olesky
Principal

E: dolesky@kpmg.com

Frances Xing
Principal

E: francesxing@kpmg.com

 

 

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