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U.S. Plans Tariffs on Chinese ‘Legacy’ Chips, Keeps Rate at 0% Until June 2027

The delay preserves negotiating leverage with Beijing during a fragile trade truce.

Overview

  • The U.S. Trade Representative concluded after a Section 301 investigation that China’s state-driven push for semiconductor dominance is unreasonable and actionable under U.S. trade law.
  • New tariffs on Chinese semiconductors are formally set but will be held at an additional 0% for 18 months and then rise on June 23, 2027 to a rate to be announced at least 30 days in advance.
  • The measures target foundational, mature‑node chips and would be added on top of the existing 50% duty imposed on Chinese semiconductors earlier this year.
  • The timing aligns with a calibrated approach that has delayed some export restrictions and opened a review that could permit limited shipments of Nvidia’s H200 chips to China, alongside talks related to rare‑earths.
  • Beijing has publicly opposed the plan and warned of countermeasures, while U.S. officials signal that sweeping new tariffs from a separate Section 232 review are not expected in the near term.