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China Threatens Retaliation Over Planned US Chip Tariffs

Photo by K ZHAO / Unsplash

China on Wednesday vowed to retaliate against planned US tariffs on its semiconductor industry, calling the measures unreasonable and harmful to global supply chains.

The warning followed a US announcement that higher tariffs on Chinese chips would take effect on June 23, 2027, with rates disclosed at least 30 days in advance, according to the Office of the United States Trade Representative.

The tariffs stem from a year-long investigation that concluded Beijing’s efforts to dominate the chip sector pose an economic threat to the United States.

China’s foreign ministry said the move would disrupt global industry and damage the US economy as well.

Beijing urged Washington to resolve trade disputes through dialogue, but warned it would take “corresponding measures” if tariffs proceed.

The dispute underscores fragile US-China relations despite a recent truce between President Donald Trump and Chinese President Xi Jinping.

Tensions have also intensified over US restrictions on Chinese drones and a new $11 billion US arms sale to Taiwan.

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