TECH

Trump Spares Semiconductors in Latest Tariffs, but Risks Mount for Chinese Chipmakers

Published: Apr. 3, 2025 7:15 p.m. GMT+8

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Even though chips were spared this round, prior measures have already raised the U.S. tariff on Chinese semiconductors to 50%. Photo: Xinhua

While U.S. President Donald Trump’s latest salvo in the global trade war stopped short of targeting the critical semiconductor sector, the reprieve may be short-lived for many Chinese chipmakers.

Under a sweeping “reciprocal tariff” plan announced Wednesday, China will be hit with an additional 34% tariff, bringing the total levy on Chinese goods entering the U.S. to 54% starting April 9. Semiconductors, along with copper, pharmaceutical and lumber products were exempted from the new rates — at least for now.

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Explore the story in 30 seconds

U.S. tariffs on Chinese goods increased to 54%, but semiconductors remain temporarily exempt; prior tariffs already raised chip levies to 50%.
Chinese chip exports to the U.S. have declined significantly, with exports now shifting to countries like India, Vietnam, and South Korea.
Chinese companies are considering relocating production to bypass U.S. tariffs, as foundational semiconductors are critical for global collaboration.

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