Unlock the free White House Watch newsletter
Your guide to what Trump’s second term means for Washington, business and the world
The Trump administration has accused China of using unfair trade practices to try to dominate the global chip industry, but has said it will not raise tariffs on Chinese imports until mid-2027.
In an online filing, the Office of the US Trade Representative laid out the findings of a year-long investigation into Beijing’s control over the semiconductor industry that was launched under the Biden administration.
The filing argued that China could “weaponize dependency” and use its control over the global chip industry to economically coerce other countries. Its efforts to dominate the industry were based on practices that “are contrary to fair competition and market-oriented principles”, the USTR said.
But reports say the Trump administration will not raise tariffs on Chinese chips until at least 2027.
The outcome of the investigation comes ahead of a meeting between US President Donald Trump and Chinese leader Xi Jinping in Beijing in the coming months, and comes amid a tumultuous year in which the US-China trade war has at times roiled global stock markets and weighed on the US economy.
It also comes amid an uneasy trade truce between the world’s two largest economies after both raised tariffs to 145 percent earlier this year, severely disrupting trade, before agreeing to reduce the levy. Beijing also cut off supplies of critical rare earth minerals, which are needed for goods ranging from cars to fighter planes.
Following a meeting between Trump and Xi in South Korea in October, both Beijing and Washington agreed to ease export restrictions on technology and critical minerals.
In a filing made available on Tuesday, the US said Beijing was using its advantages as a “non-market” economy to direct China’s chip industry “into every major segment of the semiconductor supply chain.”
USTR officials wrote, “These non-market benefits include massive and persistent state financial support for the industry, including market access restrictions and direction; government guidance funds; forced technology transfers and intellectual property theft; opaque regulatory preferences and discrimination; and wage-suppressing labor practices.”
While the US will pause on imposing the imminent levies, it said it could extend them from June 23, 2027, to a rate to be decided 30 days before that date.
The Trump administration has a sweeping national security investigation into the chip industry that could lead to further tariffs. However, it has so far refused to publish the results of the investigation or lay any charges.
Trump has separately threatened to impose tariffs of up to 100 percent on imports of chips, but has suggested that companies investing in manufacturing in the US could be spared.
