The United States will take action against the Chinese semiconductor industry by imposing new tariffs on microchips imported from China, according to a statement from the U.S. Trade Representative’s Office. As reported, the new tariffs will take effect on June 23, 2027.

To date, these products have been imported into the United States with zero tariffs, which the U.S. side says has disproportionately favored the Chinese microchip industryat the expense of domestic production and the competitiveness of U.S. technology companies.

Although details on the amount of the new tariffs have not yet been provided, officials point out that the timeframe until 2027 gives companies time to adjust and reshape their trade and investment strategies.

The move is expected to provoke a backlash from Beijing as it further intensifies trade tensions between the world’s two largest economies.