US Pauses Tariffs on Chinese Chips, Monitors Trade Ties
Update: 2025-12-23
Description
The US has postponed new tariffs on Chinese chip imports until mid-2027, following a yearlong investigation into Chinas semiconductor sector. The probe revealed Chinas aggressive non-market policies to dominate the industry and create foreign dependency, hurting US commerce. The US is focusing on legacy chips used in cars, airplanes, medical devices, and telecom gear, with concerns over over-reliance on these foundational components. The US and Europe are worried about Chinas grip on these chips, as highlighted by a recent dispute between the Netherlands and a Chinese-owned chipmaker. The US Trade Representative will continue to monitor the situation, using tariffs as leverage if the Trump-Xi deal falls through, while aiming to stabilize US-China ties for now.
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