Trump Administration Weighs Risks as Semiconductor Tariff Launch Slows

A major plank of Donald Trump’s trade agenda — steep semiconductor tariffs — may not roll out as quickly as anticipated. Multiple people familiar with internal conversations say Washington is treading carefully to avoid a fresh rupture with China.
Officials reportedly spent the past week advising industry stakeholders that the administration is re-evaluating the timing and structure of the tariffs. Sources say the hesitation centers on preventing disruptions to critical supply chains and avoiding a trade fight that could harm both economies.
Despite the slowdown, insiders caution that nothing is off the table. The administration could still impose triple-digit tariffs, but the current mood reflects a desire to minimize risks related to rare earth dependencies and broader geopolitical tension.
Publicly, both the White House and the Commerce Department deny any shift in strategy, insisting there is “no change” to semiconductor tariff plans. Still, neither agency clarified when the policy — debated for years — would be finalized.
The political timing could not be more sensitive. Higher chip tariffs risk raising consumer prices across electronics-heavy industries. Trump, who recently met China’s President Xi Jinping in South Korea, is attempting to preserve a temporary truce even as he pushes for more domestic manufacturing.