US Firms Receive Clarity as Trump Administration Schedules Chinese Chip Tariff Hike for 2027

The Trump administration announced it will raise tariffs on Chinese semiconductor imports beginning in June 2027, with the specific rates to be disclosed at least a month prior, according to a notice published Tuesday in the Federal Register by the Office of the U.S. Trade Representative (USTR).

For the next 18 months, the import tariff rate for Chinese semiconductors will remain at zero, the filing said. This is part of an ongoing investigation, initiated a year ago, in which USTR concluded that China has engaged in unfair practices within the sector.

The office claims that China has employed “increasingly aggressive and sweeping non-market policies and practices” in pursuit of industry dominance.

Delaying the imposition of new tariffs for at least a year and a half appears aimed at easing tensions between Washington and Beijing, with the possibility that the additional tariffs could be used as leverage in future negotiations if discussions between the two powers falter.

Last October, President Donald Trump and China’s President Xi Jinping reached an agreement broadly halting the so-called trade war, with the U.S. rolling back some tariffs and China agreeing to permit rare earth exports. According to the USTR’s latest filing, tariffs on Chinese semiconductors are scheduled to increase on June 23, 2027.

This tariff review, focused on legacy chips, was started during the Biden administration under Section 301 of the Trade Act. The newly specified 2027 effective date provides additional certainty for American companies monitoring the impact of U.S. trade policy on their operations and supply chains.

Notably, these tariffs are distinct from other potential duties threatened by the Trump administration on Chinese chip imports under Section 232.