The U.S. semiconductor industry bristled at President Donald Trump’s plan to impose tariffs on about $50 billion of Chinese goods, arguing they will hurt American business and make the country less competitive.

The rules, which take effect July 6, will place 25% tariffs on a variety of goods including semiconductors and related product imports, products brought into the U.S. that amounted to $2.5 billion in 2017, according to the Semiconductor Industry Association, a U.S. trade group.

A second set of tariffs, which would take effect at a later date, includes additional semiconductors and related products—and that impact is more extensive, including a wider collection of components in chips than the original list, the group said. The trade group said it was still determining the financial impact.

China, in a retaliatory move, said it would impose tariffs of 25% on U.S. products including autos, agriculture and seafood.

Chip makers feel as if they are in the middle of a “game of chicken,” said Robert Maire, president of the consulting firm Semiconductor Advisors.

Many chip makers are loath to wade into the debate for fear of stoking tensions, which could hurt their stocks or rile the Trump administration, Mr. Maire said, but there is a built-in assumption the U.S. and China will work it out.