The U.S.-China trade war reached a peak when both countries imposed significant tariffs on each other's goods. In one of the most notable measures, the Trump administration levied a 245% tariff on Chinese products, while China retaliated with a 125% tariff on U.S. goods. These tariffs disrupted trade between the two nations, with both countries facing challenges in bearing the high duties. Despite the ongoing tariff conflict, the semiconductor sector has largely been insulated from the worst effects.

On April 11, 2025, the U.S. Customs and Border Protection (CBP) issued an update to the "reciprocal tariffs" imposed by President Trump's executive order No. 14257, signed on April 2, 2025. The order introduced additional tariffs on specific imports to address the long-standing trade imbalance between the U.S. and China. However, the CBP announcement clarified that certain products, including semiconductors, optoelectronic devices, memory cards, monitors, and telecommunications equipment, would be exempt from the newly imposed tariffs, with retroactive effects from April 5, 2025. These products are classified under U.S. Harmonized Tariff Schedule (HTSUS) codes such as 8471 and 8541.

Importers of these exempted goods are required to declare their products during customs clearance using the 9903.01.32 classification code. This indicates that U.S. semiconductor imports from China will not be subject to the new tariffs.

On April 24, 2025, the U.S. Department of Commerce's Bureau of Industry and Security (BIS) updated its Export Administration Regulations (EAR), adding 18 entities to the "Unverified List" (UVL), including five Chinese companies. This move restricts U.S. companies from benefiting from certain licensing exemptions when exporting or re-exporting items under the EAR. The newly added Chinese entities are:

 ● Arctic Star Co., Ltd.

 ● Henixio Aviation Co., Ltd.

 ● Shusum Construction Ltd.

 ● SinoWorld International Co., Ltd.

 ● Vauxhall International Co., Ltd.

In addition, the BIS removed three Chinese entities from the UVL:

 ● Bada Group Hong Kong Corporation, Limited

 ● PNC Systems (Jiangsu) Co., Ltd.

 ● Small Leopard Electronics Co., Ltd.

These changes highlight the ongoing monitoring and regulatory actions surrounding Chinese companies involved in sensitive sectors, particularly in technology and semiconductors.

On the Chinese side, there have been reports suggesting that China is considering adjustments to its tariff policies on U.S. semiconductor products. Speculation has emerged that China may soon lift the 125% tariff on semiconductor products under the HS code 8542, which includes integrated circuits and chips. Such a move could benefit U.S. companies like Qualcomm, Intel, and Texas Instruments. As of April 24, 2025, some reports indicated that specific semiconductor products under HS codes 854231, 854233, and 854239 would be exempt from Chinese tariffs, although products like memory ICs under HS code 854232 would still face the tariff.

These potential changes reflect ongoing discussions and adjustments in the semiconductor industry, which is considered a critical component of both U.S. and Chinese technological strategies. The U.S. and China appear to be navigating a complex landscape of trade negotiations, with the semiconductor sector remaining a key focus for both nations.

As the semiconductor industry plays a significant role in global supply chains, the developments surrounding tariffs and export controls will continue to be closely watched, particularly as both countries work through their trade relationship.