A long-anticipated semiconductor tariff package may face delays, according to sources familiar with internal discussions. The administration appears increasingly wary of escalating tensions with China.
Officials have begun briefing stakeholders on the potential slowdown. They fear Beijing could retaliate by restricting rare earth exports crucial to US chip manufacturing.
Tariffs could still be enacted quickly, but insiders say the administration is weighing several scenarios. The earlier expectation of immediate action has softened.
The White House denies modifying its stance, stressing that it remains focused on manufacturing security. Commerce officials echoed the sentiment but declined to offer timing specifics.
Economists caution that raising tariffs could further inflate consumer prices in electronics, automotive technology and household appliances.
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