USTR Accuses China of Market Distortion in Foundational Chip Sector, Delays Tariff Hikes Until 2027
The U.S. Trade Representative's office has released findings alleging China's non-market practices in semiconductor manufacturing, specifically targeting legacy chip production. These foundational chips—critical for industries from aerospace to medical devices—have become a focal point of trade tensions.
Notably, the report delays retaliatory tariffs until June 2027, maintaining zero duties on legacy chips for 18 months. This decision follows the October 2024 truce between U.S. and Chinese leaders, creating a temporary détente in the tech cold war.
For crypto markets, the extended timeline reduces immediate supply chain risks for mining hardware and AI infrastructure reliant on these semiconductors. However, the structural conflict over tech dominance persists—a macro factor for blockchain projects dependent on chip availability.
