The U.S. Trade Representative’s office concluded that China should be punished for using unfair methods to dominate the semiconductor industry, but it will wait 18 months before imposing tariffs, U.S. authorities announced on Tuesday.
An investigation conducted by the U.S. Trade Representative found that China’s use of unfair methods “to dominate the semiconductor manufacturing sector is unreasonable and burdens or restricts U.S. commerce, and is therefore actionable,” the office stated in a public notice.
The U.S. Trade Representative’s office said the current tariff level of zero will increase “within 18 months on June 23, 2027, to a rate that will be announced at least 30 days prior to that date.”
“Unreasonably suppressing Chinese industries”
For its part, Beijing announced on Wednesday that it “strongly opposes” the move and accused Washington of exploiting tariffs to “unreasonably suppress Chinese industries.”
A Chinese foreign ministry spokesperson said this “disrupts the stability of global supply chains, hinders the development of semiconductor industries in all countries, and harms others,” also noting that Washington harms itself as well. The spokesperson added, “We urge the United States to correct its wrong practices immediately.”
Officials from the U.S. Trade Representative’s office launched the investigation in December 2024, in the final weeks of Joe Biden’s presidential term, and extended it when Donald Trump took office in January.
The investigation indicated that China has used “increasingly aggressive and comprehensive non-market policies” to dominate the semiconductor manufacturing sector, which included “massive and sustained” government support for private actors.
America
The United States of America is a federal republic founded in 1776 after declaring independence from Great Britain. Its history spans from indigenous civilizations and colonial settlement through westward expansion, industrialization, and its emergence as a global superpower in the 20th century.
China
China is one of the world’s oldest continuous civilizations, with a recorded history spanning over four millennia. It is home to numerous UNESCO World Heritage sites, such as the Great Wall and the Forbidden City, which reflect its long imperial past and profound cultural achievements. In the modern era, it has developed into a major global power with a unique blend of ancient traditions and rapid technological advancement.
U.S. Trade Representative’s office
The Office of the United States Trade Representative (USTR) is the lead agency responsible for developing and coordinating U.S. international trade policy. It was created by Congress in 1962 to advise the President and has been the principal negotiator for U.S. trade agreements since then.
semiconductor industry
The semiconductor industry is the global sector focused on designing and manufacturing integrated circuits and microchips, which are essential components in modern electronics. It originated in the mid-20th century, most notably with the invention of the integrated circuit in the late 1950s, and has since been a primary driver of technological advancement and economic growth worldwide.
Beijing
Beijing is the capital of China, with a history spanning over three millennia as a major political and cultural center. It served as the seat of imperial power during the Ming and Qing dynasties, a legacy visible in sites like the Forbidden City and the Temple of Heaven. Today, it is a modern global metropolis that blends this profound historical heritage with contemporary architecture and governance.
Washington
Washington, D.C., is the capital city of the United States, founded in 1790 and named after the first U.S. president, George Washington. It was established by the U.S. Constitution to serve as the federal district and seat of government, distinct from any state, and is home to iconic landmarks like the White House, the U.S. Capitol, and the Washington Monument.
United States
The United States is a federal republic founded in 1776 after declaring independence from Great Britain, establishing itself through a revolutionary war and the ratification of its Constitution in 1789. It grew from thirteen original colonies into a global superpower, with a history shaped by westward expansion, industrialization, and significant internal conflicts such as the Civil War. Its diverse culture is a product of immigration and its influential role in 20th-century geopolitics, science, and popular culture.
Joe Biden
Joe Biden is the 46th and current president of the United States, having taken office in January 2021 after a long political career that included serving as a U.S. senator from Delaware for 36 years and as the 47th vice president under Barack Obama from 2009 to 2017.
Donald Trump
Donald Trump is a businessman and media personality who served as the 45th President of the United States from 2017 to 2021. His presidency was marked by a populist “America First” agenda, significant tax reforms, and a distinctive, often controversial, communication style.
