US to delay chip tariffs on China until 2027

The United States has concluded that China uses unfair practices to dominate the semiconductor industry but will wait until mid-2027 before imposing tariffs, US trade officials said on Tuesday.

A US Trade Representative investigation found that China’s efforts to achieve dominance in semiconductors are unreasonable and place burdens on US commerce, making them subject to action under trade law. Despite the findings, current tariffs will remain at zero until June 23, 2027, with the new rate to be announced at least 30 days in advance.

The probe was launched in December 2024 under former president Joe Biden and continued after President Donald Trump took office in January. Trump has frequently used tariffs as a policy tool, introducing duties on sectors such as steel and automobiles.

While Washington and Beijing have sparred over trade issues, they recently reached a broad truce following heightened tensions earlier this year.

The investigation, conducted under Section 301 of US trade law, concluded that China has relied on extensive state support, non-market policies and labour practices that suppress wages to strengthen its semiconductor industry.

US trade officials did not explain why the tariffs would be delayed for 18 months.