US trade officials determined that China should be punished for employing unfair tactics to dominate the semiconductor industry, but will wait 18 months to impose tariffs, American authorities said Tuesday.<\/p>\n
A US Trade Representative (USTR) investigation concluded China’s targeting of semiconductors “for dominance is unreasonable and burdens or restricts US commerce and thus is actionable,” the agency said in a public notice.<\/p>\n
The current tariff level of zero will be increased “in 18 months on June 23, 2027 to a rate to be announced not fewer than 30 days prior to that date,” USTR said.<\/p>\n
Beijing said Wednesday it “firmly opposes” the move and accused Washington of abusing tariffs to “unreasonably suppress Chinese industries”.<\/p>\n
This “disrupts the stability of the global supply chain, hinders the development of all countries’ semiconductor industries and harms others while hurting itself”, foreign ministry spokesman Lin Jian.<\/p>\n
“We urge the United States to quickly correct its erroneous practices,” Lin said at a regular press briefing.<\/p>\n
USTR officials launched the probe in December 2024 in the final weeks of Joe Biden’s presidency, extending the initiative when US President Donald Trump took office in January.<\/p>\n
Trump has been a prolific purveyor of tariffs, unveiling sector-specific levies on steel, autos and other items as well as broader measures to achieve a variety of policy objectives.<\/p>\n
The White House has jousted with Beijing but reached a broad truce with China after a major escalation in the spring.<\/p>\n
The USTR’s “Section 301” probe concluded that China had employed “increasingly aggressive and sweeping non-market policies” to dominate semiconductors that have included “massive and persistent” state support of private actors and “wage-suppressing labor practices.”<\/p>\n
The USTR did not respond to an AFP query on the reason for the 18-month timeframe on tariffs.<\/p>\n
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