• The US will delay tariffs on Chinese semiconductors until June 2027.
• Current tariffs are set at 0%, with a rate to be announced 30 days before implementation.
• China vows to retaliate against what it calls “unreasonable” US tariffs.

In a recent announcement, the U.S. Trade Representative (USTR) confirmed that new tariffs on Chinese semiconductor imports will be postponed until June 2027. The decision came in light of a year-long investigation that accused China of employing "unreasonable and discriminatory" trade practices aimed at dominating the semiconductor sector. The tariffs, initially set to rise after 18 months, will have a rate announced at least 30 days before the change, allowing for ongoing trade negotiations between the two nations, according to SCMP, Channel News Asia, and India Times.

The USTR's investigation revealed that China has targeted the semiconductor industry with aggressive policies that disrupt fair competition, which justified the anticipated tariffs. However, the postponement is seen as a measure to ease tensions following recent developments in trade relations, notably in the context of broader discussions on technology exports and rare earth metal regulations, as highlighted by India Times and AA.

In response to the U.S. announcement, Chinese officials have expressed strong opposition, warning that such tariffs will disrupt global supply chains and hinder the development of the semiconductor industry. Foreign Ministry spokesperson Lin Jian stated that if the U.S. proceeds with its plans, China will take necessary actions to safeguard its interests. This reflects ongoing tensions, especially in light of other U.S. measures targeting Chinese technologies and recent arms sales to Taiwan, according to SCMP, CBS News, and AA.