China Imposes Tariffs on U.S. Optical Fiber Suppliers Amid Trade Tensions

China has escalated trade tensions with the United States by imposing anti-circumvention tariffs on several American optical fiber suppliers. The Ministry of Commerce announced rate hikes of 37.9% for Corning Inc., 33.3% for OFS Fitel LLC, and 78.2% for Draka Communications Americas Inc. The measures follow an investigation that found these firms altered trading methods to evade existing anti-dumping duties.

The ministry emphasized the transparency of the process and protection of stakeholder rights, marking China's first anti-circumvention probe. Corning's shares experienced volatility, initially dropping 3% before recovering slightly. The new tariffs align with rates applied since April 2023 on U.S. dispersion unshifted single-mode optical fiber and will remain in effect until April 2028.

This move is widely perceived as retaliation against recent U.S. restrictions on China's semiconductor industry. The timing coincides with the TRUMP administration's efforts to limit China's chipmaking capabilities, including revoking export licenses for Taiwan Semiconductor Manufacturing Co.