The administration of President Donald Trump announced on Tuesday that it would impose tariffs on imports of Chinese semiconductors due to Beijing's "unjustified" pursuit of dominance in the chip industry, but would delay the implementation of this measure until June 2027. This was reported by Reuters, writes UNN.
Details
According to the document, the tariff rate will be announced at least 30 days in advance. This decision followed a year-long "Section 301" investigation into China's unfair trade practices, which concerned the export of "legacy" or outdated technology chips to the US and was initiated by the administration of former President Joe Biden.
China's targeted pursuit of dominance in the semiconductor industry is unjustified and burdens or restricts US trade, and therefore is grounds for action
The Chinese Embassy in Washington protested against any tariffs. "Politicizing, instrumentalizing, and weaponizing trade and technology issues, destabilizing global industrial and supply chains, will benefit no one and will ultimately backfire on those who do it," the statement to Reuters said. "We will take all necessary measures to resolutely safeguard our legitimate rights and interests," the embassy added.
This move, which preserves Trump's ability to impose tariffs, aims to reduce tensions with Beijing amid restrictions on Chinese exports of rare earth metals, on which global technology companies depend and which China controls.
As part of negotiations with China on delaying these restrictions, Washington postponed a rule restricting the export of American technology to units of already blacklisted Chinese companies. An investigation has also been launched that could allow the first shipments to China of Nvidia's second most powerful AI chip, Reuters reports, despite serious concerns from US "hawks" who believe these chips could significantly strengthen the Chinese military.
The semiconductor industry is awaiting the administration's decision on a broader investigation into tariffs on global chip imports.
This investigation, conducted under "Section 232" of the national security law, could lead to additional tariffs on Chinese semiconductors and a wide range of electronic devices containing them from all countries. However, according to Reuters, US officials privately indicate that tariffs may not be imposed in the near future.