• US Trade Representative found China’s chip dominance pursuit “unreasonable and discriminatory” on December 23
• Tariffs delayed until June 2027 as part of ongoing Trump-Xi negotiations to stabilize relations
• China accused Washington of “indiscriminate use of tariffs” threatening global supply chains

BEIJING, CN (TDR) — China vowed on December 24 to take protective countermeasures against planned US tariffs on semiconductor imports, escalating tensions despite efforts by Presidents Donald Trump and Xi Jinping to maintain a fragile trade truce.

China Condemns Unreasonable Suppression

Foreign ministry spokesman Lin Jian delivered sharp criticism of the tariff announcement, warning that China chip tariff countermeasures would follow if Washington proceeds with the duties.

“China firmly opposes the US abuse of tariffs and its unreasonable suppression of Chinese industries,” Lin said at a Wednesday press briefing.

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The spokesman accused the United States of using “indiscriminate” tariffs that would “disrupt industrial and supply chains around the world” and hinder global semiconductor industry development. Lin urged Washington to “correct its wrong practices” and warned Beijing would take measures to safeguard its “legitimate rights and interests.”

US Delays Implementation Until 2027

The Office of the United States Trade Representative on Tuesday released findings from a nearly year-long investigation into China’s chip sector, launched during the final weeks of the Biden administration. The probe concluded that Beijing’s push for semiconductor dominance was “unreasonable and burdens or restricts US commerce.”

However, the announcement revealed a significant delay. Tariffs will remain at zero percent for 18 months, increasing on June 23, 2027 “to a rate to be announced not fewer than 30 days prior to that date,” according to the Federal Register notice.

The investigation focused on China’s exports of “legacy” or older-technology chips, finding that Beijing employed “increasingly aggressive and sweeping non-market policies” including “massive and persistent” state support and “wage-suppressing labor practices.”

Trump-Xi Truce Influences Timing

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The delayed implementation represents the latest signal that the Trump administration seeks to stabilize ties with China and solidify the deal Trump and Xi struck in October in South Korea. Under that agreement, Washington and Beijing agreed to stave off astronomical tariffs and relax export restrictions on technology and critical minerals.

The China chip tariff countermeasures threat comes as both nations navigate complex negotiations over rare earth exports, technology transfers, and semiconductor supply chains. As part of broader discussions with Beijing, Washington pushed back a rule restricting US technology exports to units of already-blacklisted Chinese companies.

The administration also launched a review that could allow the first shipments to China of Nvidia‘s second-most powerful AI chips, despite concerns from China hawks who fear the technology could enhance Beijing’s military capabilities.

Existing Tariffs Already In Effect

The new tariffs would layer on top of existing duties. President Biden ordered the tariff rate on Chinese semiconductors to double to 50 percent, with those duties taking effect January 1, 2025 under a separate Section 301 investigation.

By preserving the option to further hike duties in 2027, Trump creates another potential point of leverage should his tariff deal with Xi collapse. The USTR said it “will continue to monitor the efficacy of this action, the progress made toward resolution of this matter, and the need for any additional action.”

Will the 18-month delay prevent China chip tariff countermeasures, or is Beijing preparing retaliatory restrictions on rare earths and other critical materials?

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