- New tariffs on Chinese semiconductors are planned but will not take effect until June 2027, following a prolonged investigation into unfair trade practices.
- Beijing strongly opposes the move, warning of disruption to global supply chains even as Washington navigates broader tech and diplomatic tensions.
What happened: US delays China semiconductor tariffs until 2027 amid fragile trade thaw
The United States government has announced that it will impose new tariffs on. semiconductors imported from China, but will delay their implementation until June 23, 2027. Initially set at zero per cent, the tariff rate will be published at least 30 days before enforcement and could rise significantly thereafter. The decision follows a year-long probe under Section 301 of the US Trade Act into Beijing’s support for its semiconductor sector, which Washington characterised as an “unreasonable” attempt to dominate a crucial technology market.
That investigation, launched during the administration of President Joe Biden and completed under the Trump administration, focused on so-called “legacy” chips – older-technology semiconductors widely used in consumer electronics, automobiles and telecommunications – rather than the most advanced nodes.
Chinese officials have voiced strong opposition to the planned tariffs. A spokesperson for China’s Ministry of Commerce said that Beijing rejects the findings of the US investigation and that unilateral tariffs would violate World Trade Organisation rules, disrupt global supply chains and harm both Chinese and US interests. China has lodged formal objections through bilateral economic consultation mechanisms and warned of “necessary measures” should Washington proceed.
The announcement comes amid ongoing diplomatic efforts to stabilise commercial relations between the world’s two largest economies. In parallel negotiations, the US has moderated some export restrictions and engaged in talks over rare earth export controls that Beijing had previously tightened, moves that affect industries from consumer electronics to defence supply chains.
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Why it’s important
Semiconductors are at the heart of a global tech competition that encompasses national security, economic growth and supply chain resilience. China’s ambitions in chip manufacturing – backed by substantial state support – have been a focal point of US policy for years, with Washington arguing that Beijing’s approach creates an uneven playing field and risks future technological dependency. The tariff plan is a continuation of that strategy.
Delaying the tariffs until 2027 suggests a calibrated approach by the US: authorities are balancing punitive measures with a desire to avoid immediate escalation that could reverberate through global markets. Many technology firms operate integrated supply chains that span continents, and abrupt trade barriers can raise production costs and disrupt deliveries. Economists and industry analysts have cautioned that unilateral tariffs alone cannot restructure these complex networks, and might trigger higher costs for consumers and manufacturers alike.
From a geopolitical standpoint, the phased approach buys time for further dialogue between Washington and Beijing while maintaining leverage. With both sides facing pressure at home to protect strategic industries, the announcement reflects broader tensions in US-China relations. It also raises questions about the efficacy of tariffs in addressing deep structural issues in the global semiconductor ecosystem, where cooperation and competition coexist.
Countries with significant roles in chip production, such as Taiwan, South Korea and members of the European Union, will be watching closely. Any shift in US policy towards Chinese technology could have knock-on effects on foreign investment, joint ventures and supply chain diversification efforts.
