A cornerstone of Donald Trump’s economic strategy — hefty semiconductor tariffs — may be delayed, according to people familiar with internal policy debates. The slowdown reflects a broader effort to preserve stability in US-China relations.
Over the past week, officials have reportedly advised industry groups that the administration is reassessing its timeline. Sources say the goal is to prevent retaliation from Beijing and ensure that vital mineral supplies remain uninterrupted.
The proposed tariffs, which Trump has said could reach 100%, were expected to be implemented soon. But insiders now say the government is moving more cautiously, though the possibility of abrupt action remains on the table.
The White House rejected claims of a policy shift, asserting that it remains committed to strengthening domestic manufacturing. The Commerce Department also dismissed suggestions of changing course but declined to offer clarity on timing.
The political environment complicates matters. New chip tariffs could drive up prices on a wide range of consumer products. With American households already strained by inflation and holiday expenses, officials must balance economic pressure with foreign policy strategy.