Senior US officials are privately signalling that the Trump administration may postpone implementing long-promised semiconductor tariffs, potentially delaying a cornerstone of the president's economic agenda, according to sources familiar with the matter.
Behind the Scenes: Changing Guidance on Chip Tariffs
Over recent days, administration representatives have conveyed this shift in position to stakeholders across government and private industry. Four separate sources confirmed the changing guidance, including two with direct knowledge and another briefed on conversations. A fourth individual indicated the administration is adopting a more cautious stance to prevent provoking Beijing.
These previously unreported discussions reveal that Trump aides are proceeding carefully with semiconductor tariffs to avoid damaging relations with China. The administration fears triggering a return to tit-for-tat trade disputes that could disrupt supplies of critical rare earth minerals, according to two people familiar with the deliberations.
Delicate Timing Amid Economic and Diplomatic Pressures
Sources emphasised that no final decision has been made and that triple-digit tariffs could still be imposed at any time. The individuals spoke anonymously to discuss sensitive policy deliberations.
President Trump announced in August that the United States would impose approximately 100% tariffs on semiconductor imports, though he exempted companies manufacturing in America or committed to doing so. Privately, Washington officials had previously indicated the tariffs would be implemented soon, but that position has now shifted as the administration debates timing and implementation details.
When questioned about these discussions, both a White House official and Commerce Department representative disputed any change in administration posture. "That is not true," stated the White House official without specifying what was inaccurate, adding that "the administration remains committed to reshoring manufacturing critical to our national and economic security."
The Commerce Department official similarly asserted: "There is no change in department policy regarding semiconductor 232 tariffs." Neither official provided details about when tariffs first threatened early in the Trump administration might be finalised.
Broader Implications for Trade and Consumers
Any decision to delay or narrow semiconductor tariffs comes at a sensitive moment for President Trump. The Republican leader faces growing consumer anxiety about prices during the holiday shopping season, and imposing taxes on imported semiconductors could increase costs for countless devices from refrigerators to smartphones.
This potential delay follows Reuters reporting in September that the administration was considering taxing foreign electronic devices based on their chip content. Although Trump recently rolled back tariffs on over 200 food products, he maintains that his import taxes haven't significantly contributed to inflation.
The administration is also attempting to maintain a delicate trade truce with China, a major manufacturer of both semiconductors and devices containing them. Last month, Trump met Chinese President Xi Jinping in Busan, South Korea, where they agreed to temporarily set aside trade disputes.
However, during those Korean discussions, US officials warned Chinese counterparts they might take national security measures in coming months that Beijing would find objectionable, according to two people familiar with those exchanges.
The Trump administration launched investigations into pharmaceutical and semiconductor imports in April, arguing that extensive foreign production dependence poses national security threats. President Trump believes tariffs can help revive domestic factory jobs lost over decades to countries including China.
