US Imposes Tariffs on Chinese Semiconductors, Effective June 2027

• The US announced tariffs on Chinese semiconductor imports, to be effective from June 2027, with rates declared one month prior.
• This decision follows a year-long investigation into Chinese chip imports, initiated by former President Joe Biden's administration.
• The US government stated China's semiconductor dominance attempts are unfair and obstruct American trade.
• The announcement comes amidst US President Donald Trump's efforts to de-escalate tensions and secure rare earth minerals from China.
• The US is also reconsidering export rules, including those for Nvidia's AI chips to China, and Trump withdrew a law on blacklisted Chinese companies.

Why It Matters: US imposes future tariffs on Chinese semiconductors while simultaneously seeking to ease trade tensions.