The Trump administration is quietly reassessing the timing of long-promised semiconductor tariffs, with several U.S. officials privately signalling that duties may not be imposed as soon as previously indicated.
Reuters carry the report.
Multiple people familiar with recent conversations said the administration has adopted a more cautious stance, wary of provoking Beijing and potentially reigniting the disruptive tit-for-tat trade tensions of recent years.
Officials have conveyed this softer tone to lawmakers, industry groups and companies over the past several days. While no final decision has been made—and triple-digit tariffs could still be introduced at any time—sources said the White House is weighing the geopolitical risks alongside concerns about supply chains, particularly rare earth materials essential for chipmaking.
Publicly, the administration denies any shift. A White House spokesperson insisted nothing has changed and reiterated Washington’s commitment to reshoring critical manufacturing. The Commerce Department also said its semiconductor tariff posture remains intact, while offering no clarity on timing.
The hesitation comes at a politically sensitive moment for President Trump, who faces rising voter frustration over living costs heading into the holiday season. Higher tariffs on imported chips could push up consumer prices on everyday electronics. Officials have previously examined the idea of taxing foreign devices based on the number of semiconductors they contain—raising the possibility of broad consumer impact.
At the same time, Trump is attempting to maintain a fragile trade truce with China. He met President Xi Jinping last month in Busan, agreeing to pause escalating trade actions, even as U.S. officials warned China that forthcoming national-security-based measures may still prove contentious.
Washington launched national security investigations into pharmaceutical and semiconductor imports in April, laying the groundwork for tariffs of roughly 100% on foreign-made chips, excluding companies with existing or committed U.S. production. But internal debate over scope and timing has slowed the rollout.
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A delay in U.S. chip tariffs reduces near-term trade-war risk and should ease concerns for semiconductor supply chains, Chinese manufacturers and consumer-electronics pricing, though uncertainty over eventual tariff scope remains.
