US Launches Tariff Action Over Chinese “Unreasonable” Pursuit Of Chip Industry Dominance

It appears that the unstable trade truce between the US and China is over.  

In what the SCMP calls a “decisive trade move against China’s semiconductor industry” the US Trade Representative Office said it had determined that Beijing’s drive for dominance in the sector is “unreasonable and discriminatory” and poses a direct threat to US commerce.

In a formal Notice of Action filed with the Federal Register, the agency said the US will slap tariffs on Chinese semiconductor imports over Beijing’s “unreasonable” pursuit of chip industry dominance, but would delay the action until June 2027, at which point the rate will be raised to a higher level that will be announced 30 days before the deadline.

The filing follows a year-long investigation into China’s chip imports into the United States, launched by the Biden administration on December 23, 2024, which concluded that China has employed “sweeping non-market policies” to capture global market share and displace foreign competitors.

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