USTR creates a new Section 301 action on Chinese semiconductors (HTS 2804.61.00, 3818.00.00, 8541/8542 series) at 0% now, rising June 23, 2027.

This Federal Register notice from USTR is immediately actionable for U.S. imports because it establishes a new Section 301 tariff action on semiconductors and related products from China and modifies the HTSUS.

Scope and products

The action targets a defined list of 8‑digit HTSUS subheadings covering semiconductor materials and devices, including:

• 2804.61.00: Silicon containing by weight not less than 99.99 percent of silicon.
• 3818.00.00: Chemical elements doped for use in electronics, in the form of discs, wafers, etc.; chemical compounds doped for electronic use.
• 8541.10.00: Diodes, other than photosensitive or light-emitting diodes.
• 8541.21.00 and 8541.29.00: Transistors (non-photosensitive) with dissipation ratings below and above 1 W.
• 8541.30.00: Thyristors, diacs and triacs, other than photosensitive devices.
• 8541.49.10, 8541.49.70, 8541.49.80, 8541.49.95: Various photosensitive semiconductor diodes, transistors, and other photosensitive semiconductor devices.
• 8541.51.00 and 8541.59.00: Semiconductor-based transducers and other semiconductor devices.
• 8541.90.00: Parts of diodes, transistors, similar semiconductor devices, photosensitive semiconductor devices, LEDs and mounted piezoelectric crystals.
• 8542.31.00, 8542.32.00, 8542.33.00, 8542.39.00: Electronic integrated circuits (processors/controllers, memories, amplifiers, and other ICs).
• 8542.90.00: Parts of electronic integrated circuits and microassemblies.

Tariff structure and changes

The notice determines that China’s acts and policies targeting the semiconductor industry are actionable under Section 301 and that tariff action is appropriate. USTR establishes a new Section 301 tariff line via HTSUS heading 9903.91.05 and amendments to U.S. note 31(f) to subchapter III of chapter 99.

Key points:

• Existing duty: Semiconductors from China are already subject to an additional 50% Section 301 duty under the prior forced technology transfer investigation.
• New action: USTR now imposes an additional Section 301 action on the same sector, but sets the initial additional duty rate at 0%.
• Effective date: The new action (0% additional duty) is effective December 23, 2025.
• Future increase: Subdivision (f)(ii) of note 31 provides that the additional rate of duty under heading 9903.91.05 will be increased on June 23, 2027. The specific increased rate will be announced in a separate Federal Register notice issued at least 30 days before that date.

Numerical impact:

• From December 23, 2025, until June 22, 2027, the new Section 301 action adds 0 percentage points to the existing 50% additional duty; the total additional Section 301 burden on covered semiconductors from China remains 50% during this period.
• On and after June 23, 2027, the additional duty under heading 9903.91.05 will rise above 0%; the exact percentage increase is not yet specified but will be in addition to the existing 50% duty, raising the total Section 301 burden on affected imports.

HTSUS and FTZ implementation

The Annex modifies subchapter III of chapter 99 of the HTSUS by:

• Amending U.S. note 31(f) to distinguish paragraph (i) (existing reference to heading 9903.91.05) and adding paragraph (ii), which sets the scheduled increase date and requires a future notice specifying the rate.

Foreign-trade zones (FTZs):

• Any product covered by the Annex (i.e., the listed HTSUS subheadings from China) that is subject to the additional duty and is admitted into a U.S. FTZ on or after December 23, 2025, may only be admitted in privileged foreign status.
• Such products will be subject upon entry for consumption to the applicable ad valorem rates of duty and any quantitative limitations based on their HTSUS classification, including the Section 301 duties.

Geographic scope

• The action applies to products of China only.

Compliance actions for importers and brokers

1) Classification and flagging:

• Confirm that all semiconductor-related imports from China are correctly classified under the specified 8‑digit HTSUS subheadings.
• Ensure that customs entry systems and broker instructions flag these lines for application of HTSUS heading 9903.91.05 where required.

2) Duty calculation and planning:

• For entries on or after December 23, 2025, continue to apply the existing 50% Section 301 duty on covered semiconductors from China under the forced technology transfer action.
• Recognize that the new Section 301 action currently adds 0% but will increase on June 23, 2027; plan for higher landed costs from that date.
• Monitor for the forthcoming Federal Register notice (expected no later than May 24, 2027) that will specify the new additional duty rate.

3) FTZ operations:

• For covered Chinese semiconductor products admitted into FTZs on or after December 23, 2025, ensure admission in privileged foreign status.
• Review FTZ inventory and admission practices to avoid misclassification of status for affected goods.

4) Internal controls and contracts:

• Update internal tariff databases, ERP systems, and landed cost models to reflect the new Section 301 structure and the scheduled 2027 increase.
• Review supply contracts and pricing arrangements that extend beyond June 23, 2027, to account for potential duty increases once the new rate is announced.

Priority and monitoring

This action is high priority for semiconductor importers because it confirms continued 50% Section 301 exposure and sets a firm date for an additional, yet-to-be-specified duty increase in 2027. Trade compliance teams should track USTR announcements closely and be prepared to adjust sourcing and pricing once the new rate is published.