Plans to impose steep semiconductor tariffs are losing urgency as officials grow concerned about potential fallout with China, according to individuals briefed on private discussions.
Government partners and industry leaders were advised that tariff implementation may be slower than projected. The administration wants to avoid destabilizing supply chains tied to rare earth materials.
Tariffs of up to 100% remain possible, but internal debate has taken a more cautious tone. Policymakers are assessing geopolitical risks as well as domestic economic concerns.
White House representatives insist that nothing has changed, though they provide no details on timing. This lack of clarity has contributed to mounting industry uncertainty.
New tariffs could heighten inflationary pressures and drive up prices for electronics and technology-driven goods — a politically sensitive issue.