USTR announces tariffs following Section 301 investigation into China's semiconductor industry practices
Tariffs will increase in 18 months—on June 23, 2027
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.