US Officials Reconsider Chip Tariff Rollout as Market and Diplomatic Pressures Mount

A carefully constructed semiconductor tariff plan — once touted as a major economic win for Donald Trump — is now encountering hesitation within the US government. People familiar with recent internal conversations say the administration is re-evaluating its strategy.
Officials reportedly warned industry leaders that implementing the tariffs too quickly could provoke a strong response from China, potentially threatening rare earth supply lines. These materials are vital for chip manufacturing and multiple defense-related technologies.
Although sweeping tariffs remain under consideration, insiders say the earlier assumption of a rapid rollout has softened. The administration continues to debate both scope and timing.
The White House denies altering its stance, saying its commitment to domestic production remains firm. However, neither the White House nor the Commerce Department provided clarity on when the tariffs might actually be enforced.
Any misstep could impact millions of American consumers. Higher chip prices could increase costs for smartphones, refrigerators, computers and numerous other electronics, adding pressure to inflationary trends that continue to challenge households.