US delays new China chip tariffs until 2027

The U.S. will delay its tariff increase on Chinese semiconductor imports to June 2027, a decision announced after a year-long "Section 301" investigation launched on December 23, 2024.

Zero tariff will be charged for the next 18 months on semiconductor imports from China, and future tariff rates will be determined at least 30 days in advance, according to the Federal Register filing published by the United States Trade Representative (USTR) on December 23, 2025.

The aforementioned filing labels China's acts and policies in the semiconductor industry as "unreasonable." Despite this, the USTR has decided to hold off on an immediate action to impose tariffs. 

This move is widely considered as an act to preserve the trade truce between the two countries. "The decision to delay new tariffs for at least 18 months signals that the Trump administration is seeking to cool any trade hostilities between the U.S. and China," according to CNBC.

While new levies are delayed, the 50 percent tariff on Chinese semiconductors imposed by the Biden administration on January 1, 2025, remains in effect.