• The US has delayed new tariffs on Chinese semiconductor imports until June 2027.
• The tariffs will target "legacy" chips and will initially be set at zero percent.
• The postponement aims to ease trade tensions and maintain leverage during negotiations.
• A Section 301 investigation identified China's practices as unfair to US commerce.
• Existing tariffs include a 50 percent duty on additional Chinese semiconductors starting January 2025.

The United States government announced that it will defer new tariffs on Chinese semiconductor imports until June 2027, allowing existing duties to remain at zero until then. This decision follows a year-long Section 301 investigation initiated by the Biden administration, which found that China’s strategies to dominate the semiconductor market are unfair trade practices that burden US commerce, according to Channel News Asia, India Times, and AA.

The Office of the US Trade Representative (USTR) noted that the tariff rate will be disclosed at least 30 days before its implementation in June 2027, a point reiterated by multiple sources. The administration's choice to delay the tariffs is strategically intended to maintain leverage in ongoing trade negotiations, particularly against the backdrop of recent Chinese restrictions on rare earth metal exports, crucial for multiple tech sectors. This information is corroborated by reports from Channel News Asia and India Times.

The postponement of the tariffs aligns with broader efforts to de-escalate trade tensions following Trump's trade truce with Xi Jinping, which had previously lowered some tariffs in exchange for concessions regarding rare earth metals. This highlights a crucial aspect of the ongoing economic relationship between the two nations, as suggested by the ongoing investigations into China's state-backed industrial policies, according to AA.

Moreover, current duties on Chinese semiconductors are set to increase in 2025, adding complexity to the US's approach to managing its trade strategy with China, with an additional 50% tariff already planned to take effect at that time. This layered tariff structure indicates a cautious yet firm strategy by US officials in the semiconductor sector, as emphasized by multiple analyses, according to Channel News Asia, India Times, and AA.