Plans to impose major semiconductor tariffs — long touted by Donald Trump — may be facing an unexpected slowdown, according to several people familiar with internal discussions. The shift reflects heightened concerns about provoking Beijing during a sensitive period in US-China relations.
Multiple sources say officials conveyed to industry leaders and government partners that the administration is proceeding more cautiously than previously expected. The fear is that sudden tariff escalation could destabilize supply chains and ignite a new round of retaliatory measures from China.
Some advisers worry that cutting off access to rare earth minerals or disrupting global chip production could negatively affect US manufacturers. Though insiders emphasize that tariffs could still be implemented at any moment, they acknowledge that earlier signals of imminent action have been revised.
White House and Commerce Department officials publicly dismissed claims of a shift in policy, stating that the administration remains committed to reshoring vital manufacturing sectors. They declined, however, to offer any timetable for the proposed 100% tariffs Trump announced last August.
Any delay comes at an awkward political moment. Higher chip tariffs could push up prices on electronics like smartphones, vehicles and home appliances — adding to the economic concerns of consumers already wary of inflation. The administration is also balancing domestic pressures with its desire to maintain stability with Beijing.