Trump administration trade officials said China should be punished for employing unfair tactics to dominate the semiconductor industry, but will wait 18 months to impose tariffs.

A U.S. Trade Representative 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 posted Tuesday.

It said 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."

The public notice comes after a year-long investigation into China's approach to the chip industry, undertaken through Section 301 of the Trade Act of 1974. Under that law, the U.S. president may impose country-based tariffs at a rate of his choosing if the U.S. Trade Representative finds that another country is engaging in unfair foreign trade practices.

"For decades, China has targeted the semiconductor industry for dominance and has employed increasingly aggressive and sweeping non-market policies and practices in pursuing dominance of the sector," the public notice said.

Opposition from Beijing
Beijing said Wednesday it "firmly opposes" the move and accused Washington of abusing tariffs to "unreasonably suppress Chinese industries".

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.

"We urge the United States to quickly correct its erroneous practices," Lin said at a regular press briefing.

USTR officials launched the probe in December 2024 in the final weeks of the Biden presidency, extending the initiative when President Trump took office in January.

Mr. 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.

The White House has jousted with Beijing but reached a broad truce with China after a major escalation in the spring.

The USTR's probe concluded that China's policies have included "massive and persistent" state support of private actors and "wage-suppressing labor practices."

The USTR did not respond to an AFP query on the reason for the 18-month timeframe on tariffs.

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