Key Facts
- ✓ China said on Wednesday it would hit back against the latest US tariffs targeting its semiconductor sector.
- ✓ The Office of the United States Trade Representative said it would raise the tariffs on June 23, 2027.
- ✓ The specific tariff levels will be announced at least 30 days in advance.
- ✓ The tariffs followed the release of findings from a year-long probe into China’s chip sector.
- ✓ The probe was launched in the final month of the Joe Biden administration.
Quick Summary
China has declared its intention to issue a counter-response to the United States' latest trade measures targeting the semiconductor industry. The statement was released on Wednesday following a formal announcement from US trade officials on Tuesday. The United States plans to implement higher tariffs on Chinese semiconductors starting June 23, 2027. The specific tariff rates will be announced at least 30 days before the effective date.
The decision follows the conclusion of a year-long investigation into China's chip manufacturing capabilities. This investigation was launched near the end of the Joe Biden administration. The US government cited Beijing's aggressive policies to control the semiconductor market as the primary reason for the tariff increase. In response, Chinese officials have labeled the tariffs as unreasonable and have promised to take necessary actions to defend their economic rights.
US Trade Representative Announces Tariff Hike
The Office of the United States Trade Representative officially announced the decision to raise tariffs on Chinese semiconductors. The announcement was made on Tuesday, setting the stage for a renewed trade confrontation between the two economic superpowers. The tariffs are scheduled to go into effect on June 23, 2027.
According to the office, the specific levels of the tariffs will be made public at least 30 days in advance of the effective date. This timeline provides a window for affected industries to prepare for the changes. The move is a direct result of the findings from a comprehensive trade investigation.
The investigation that led to this decision was initiated in the final month of the Joe Biden administration. It focused specifically on the practices within China's semiconductor industry. The US government has expressed concerns regarding Beijing's strategic push to dominate the global supply chain for these critical technological components.
China's Response and Accusations
On Wednesday, China responded swiftly to the US trade announcement. Chinese officials stated that they would 'hit back' against what they described as the latest US tariffs targeting their semiconductor sector. The response indicates that Beijing is preparing to take countermeasures to offset the impact of the US actions.
China has characterized the proposed US tariffs as unreasonable. The government maintains that the US investigation and subsequent tariff threats are protectionist measures designed to stifle China's technological advancement. The pledge to retaliate suggests that the trade tensions between the two nations could escalate further as the 2027 implementation date approaches.
Context of the Semiconductor Probe
The current trade dispute is rooted in a year-long probe conducted by US trade authorities. This investigation was launched to examine the market dynamics and government support for China's chip sector. The timing of the probe's initiation—during the final month of the Joe Biden administration—highlights the continuity of US policy concerns regarding Chinese industrial practices.
The core of the US grievance lies in Beijing's push to establish dominance in the semiconductor field. Semiconductors are vital for a wide range of products, from consumer electronics to military hardware. By raising tariffs, the US aims to address what it perceives as unfair trade practices and to protect domestic semiconductor manufacturing capabilities.
