United States Will Not Impose Additional Tariffs on China Chips for the Next 18 Months

On December 23, the U.S. government announced the termination of the China chip trade investigation initiated by the previous Biden administration and decided not to impose additional tariffs on Chinese chips within the next 18 months. The relevant tariffs will temporarily remain at 0%, with plans to increase specific rates starting in June 2027, with the extent of the increase to be announced 30 days in advance. The U.S. side stated that the practices of the Chinese chip industry "harm its interests," but Bloomberg interprets this temporary suspension of tariff increases as the latest signal from the U.S. to solidify the "truce" in China-U.S. economic and trade relations and stabilize bilateral relations.