On December 23, 2025, the United States Trade Representative (USTR) determined that China’s acts, policies, and practices related to targeting of the semiconductor industry for dominance are actionable under Section 301 of the Trade Act of 1974. Accordingly, the USTR will take tariff action on U.S. imports of semiconductors from China, with an initial tariff level of 0%, increasing in 18 months on June 23, 2027, to a rate to be announced at a later date. This Section 301 action applies to 18 subheadings of the Harmonized Tariff Schedule of the United States (HTSUS) under Chapters 28, 38 and 85. These new Section 301 tariffs will be in addition to the existing 50% Section 301 tariff on U.S. imports of semiconductors from China imposed as part of the 2018 Section 301 investigation related to forced technology transfer and to any antidumping, countervailing, or other duties, fees, exactions and charges that apply to such products.
In its affirmative determination, the USTR found that 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.” Such actions were found to be unreasonable because of China’s “extraordinary control over the semiconductor industry, and other economic actors, in order to achieve its targeted dominance, including through political guidance, directives, and control within state and private enterprises.” These efforts were found to harm foreign competitors and purchasers by “creating and exploiting dependencies” and undercutting business opportunities for and investments in the U.S. semiconductor industry and creating economic security risks.
For additional background information on the scope of this investigation, see Thompson Hine Update of December 23, 2024.