US officials are reassessing the timing of high semiconductor tariffs long promoted by Donald Trump, several people briefed on the matter say. The shift suggests a growing desire to avoid immediate conflict with China.
Industry contacts and government partners were advised this week that the administration is slowing its approach. The fear is that dramatic new tariffs could disrupt critical supply chains and escalate tensions.
Tariffs of up to 100% remain on the table, but policymakers are focusing on how to implement them without triggering retaliation. Access to rare earth minerals — essential for chip production — is a major concern.
Despite these internal debates, the White House denies any change in direction. Officials reaffirmed a commitment to reshoring manufacturing but declined to offer details on the tariff timeline.
The political stakes are high. Raising taxes on chips could lead to cost increases for electronics and home appliances, complicating efforts to control inflation. Trump is also juggling the need for economic messaging with the goal of maintaining diplomatic calm with Beijing.
Trump Administration Rethinks Semiconductor Tariff Timing Amid China Concerns
