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The United States has made new moves in the global trade war. The Trump administration has announced a new round of tariffs on Chinese semiconductor products, based on the results of a new report, but they have not yet taken effect. this in fact The implementation date of the new tariffs is June 23, 2027. The delay in implementation may be due to the recent mild easing of tensions between China and the United States, as the Chinese government recently postponed export restrictions on rare earth products until next year.
On a technical level, according to a notification from the U.S. Trade Representative, tariffs have been implemented at a rate of 0%, a figure that will increase over an 18-month period from June 23, 2027. The new tax rate will be announced no later than 30 days before this date. Crucially, the new tariffs will be implemented on top of the 50% tariff on Chinese semiconductor imports that took effect on January 1 this year.
It is worth noting that although there was some overlap later, the tariff codes in the latest sanctions include 8541 items such as diodes, transistors, amplifiers and optocouplers, but do not include the 8542 items covered by the January 1 tariffs, which means that different components will have different tariff rates, and some may be hit by a double blow.
The new tariffs are the result of a year-long investigation launched by the U.S. Bureau of Industry and Security (BIS), itself part of an investigation into China’s semiconductor production chain initiated during the Biden administration. The resulting report has been made public and paints an interesting picture. This part of the survey focuses on “traditional” chips (typically 22nm or larger) and other components such as op amps, analog chips, and diodes—all of which are the materials from which most electronic devices are built.
The BIS compared the current overreliance on Chinese semiconductors to what happened during the coronavirus pandemic, when too many products painfully relied on a limited number of components from centralized sources. In this case, BIS found that “66% of all respondents’ products (by revenue) contained or were likely to contain at least one chip manufactured by a Chinese foundry,” and many respondents were even able to pinpoint where these chips came from, or when they originated in China.
The situation is the result of “non-market overcapacity and economic coercion,” the report said. According to HoganLovells, the findings “[point] This is consistent with China’s industrial policy framework, including the Made in China 2025 initiative, which reportedly sets specific numerical targets for domestic semiconductor production and capacity. “
