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Trump Administration Keeps Tariffs On Chinese Chips Pending, Plans Enforcement In 2027 — China Warns Move Could 'Backfire'

Benzinga · 2d ago

On Tuesday, the Donald Trump administration signalled a tough stance on Chinese semiconductors while delaying actual tariffs until 2027.

Tariffs Delayed, Not Dropped

The U.S. Trade Representative's office announced that it will impose tariffs on Chinese semiconductor imports in response to Beijing's aggressive push for chip industry dominance.

However, the enforcement has been delayed until June 23, 2027. The exact tariff rate will be disclosed at least 30 days before implementation.

The move stems from a year-long Section 301 investigation initiated under the Joe Biden administration into what Washington calls unfair trade practices by China involving legacy chips widely used in industrial equipment, automobiles, and consumer electronics.

"China's targeting of the semiconductor industry for dominance is unreasonable and burdens or restricts U.S. commerce and thus is actionable," the U.S. Trade Representative said in a statement.

 Adding that the country's "pursuit of its dominance goals has severely disadvantaged U.S. companies, workers, and the U.S. economy."

See Also: Michael Burry Asks For Photos Of Warehoused Nvidia GPUs After Analyst Questions Jensen Huang’s Blackwell Shipment Numbers

China Pushes Back Against Washington's Move

The Chinese Embassy in Washington voiced strong opposition to the planned tariffs.

In a statement to Reuters, the embassy warned that using trade and technology as political tools could destabilize global supply chains and ultimately "backfire."

The embassy also said Beijing would take all necessary measures to protect its legal rights and interests.

Meanwhile, Washington has postponed new restrictions on U.S. tech exports to blacklisted Chinese companies.

It is also reviewing potential shipments of Nvidia Corp's (NASDAQ:NVDA) second-most powerful AI chips to China—a move that has raised concerns among U.S. policymakers about military applications.

Alibaba Group Holding Limited (NYSE:BABA) and ByteDance reportedly reached out to Nvidia to place substantial orders. However, Chinese authorities have not yet approved any H200 shipments.

The H200, produced by Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) using its 4nm process, continues to be the fastest chip in Nvidia's Hopper generation.

In November 2025, Trump stated that the advanced Blackwell AI chip would remain unavailable to "other people."

Nvidia ranks highly for Quality in Benzinga's Edge Stock Rankings, showing a positive price trend over the medium and long term. Click here for a closer look at the stock, its peers and competitors.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.