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Today (December 23, 2025), the Office of the United States Trade Representative (USTR) announced final action in its Section 301 investigation into China's policies and practices seeking semiconductor dominance. USTR concluded that China's extensive non-market support, forced technology transfer, and market-share targeting across the semiconductor supply chain is unreasonable and burdens U.S. commerce.
Thus, USTR is imposing new Section 301 tariff measures on certain semiconductor products of China, effective December 23, 2025. The initial duty rate is 0%, with an increase scheduled for June 23, 2027 to a rate that will be announced at least 30 days in advance of implementation. The new measures will apply in addition to existing duties, including the current 50% Section 301 tariff on certain Chinese semiconductors imposed under the prior forced technology transfer investigation; they do not displace any applicable antidumping, countervailing, or other duties.
The 18-month delay in the imposition of non-zero tariffs and the lack of a specified future rate seem to suggest that the Trump Administration does not want further trade escalation with China, keeping with the spirit of the Kuala Lumpur Joint Arrangement that Presidents Trump and Xi agreed to at their meeting in October.
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