USTR Publishes Semiconductor Section 301 Results

Dec. 23, 2025
By: Hannah B. Kreinik

The United States Trade Representative (USTR) published a notice of action as a result of the Section 301 investigation into semiconductors launched last year. The USTR found that China’s acts, policies, and practices related to its semiconductor industry are actionable under Section 301, but that additional duties are not currently warranted.

Section 301(b) provides the authority for the USTR, with or without consultation from the President, to take any appropriate and feasible action, including imposing tariffs, against a foreign country or a foreign country’s specific products that unreasonably burdens or restricts the U.S. economy. Section 301 was used to place tariffs on articles from China under the first Trump administration and was used recently to impose duties against products from Nicaragua (see our article here). There is also an active 301 investigation with respect to Brazil.

In the notice, the USTR found that China’s acts, policies, and practices are restricting the U.S. market and foreign competitors. Specifically, the notice of action asserts that China’s central government plays a key role in controlling the semiconductor industry, including implementing economic policies to benefit semiconductor manufacturing. The notice of action also alleges that China’s government provides non-market advantages to the semiconductor industry like wage-suppressing labor practices, financial aid, and market limitations. Finally, the notice of action claims that China economically controlled semiconductor materials like critical minerals (gallium, antimony, etc.). The notice of action determined that the above Chinese actions unreasonably burdened the U.S. semiconductor market via restricting the supply chain market on semiconductor materials and dependence on the dominant Chinese manufacturing industry.

The notice of action concluded that tariffs were appropriate based on China’s actions in the semiconductor sector. As such, the USTR is imposing tariffs starting at 0% over the next 18 months, until a final tariff rate is announced 30 days prior to June 23, 2027. The notice states that the new tariff rate will be in addition to the current 50% on semiconductors from China related to the Section 301 investigation on forced tech transfers.

For more on Section 301 and how your product may be impacted, please reach out to any Barnes, Richardson & Colburn attorney.