Key Points
- U.S. officials are privately suggesting that long-threatened tariffs on semiconductors may be delayed.
- The potential delay is seen as a way to avoid a new trade conflict with China.
- President Trump is also facing pressure over high consumer prices ahead of the holiday season.
- The White House and Commerce Department have denied any change in their policy but have not provided a timeline for the tariffs.
U.S. officials are privately signaling that they might not impose the long-promised tariffs on semiconductors anytime soon. This could delay a key part of President Donald Trump’s economic agenda.
Over the past few days, officials have been communicating this message to government and private-sector officials, according to sources with direct knowledge of the matter. Another person following the situation said the administration is being more cautious to avoid angering China.
Aides to President Trump are reportedly taking their time on the chip tariffs to avoid a new trade fight with Beijing. A new conflict could risk a return to a back-and-forth trade war and disrupt the supply of critical rare earth minerals. However, these sources also warned that no decision is final until the administration officially signs off on it, and that triple-digit tariffs could be imposed at any time.
In August, Trump said the U.S. would impose a tariff of about 100% on imported semiconductors, but would exempt companies that manufacture in the U.S. or have committed to doing so. For months, Washington officials had been telling people that the tariffs were coming soon. That guidance has now apparently changed as the administration continues to debate the timing and other details.
When asked about these discussions, a White House official and a Commerce Department official denied that the administration had changed its position. Still, neither provided a timeline for when the tariffs might be finalized.
This potential delay comes at a sensitive time for Trump, who is facing growing consumer anxiety over high prices, especially with the holiday shopping season approaching. New taxes on imported semiconductors could raise the cost of everything from refrigerators to smartphones.
Trump is also trying to maintain a delicate trade truce with China, a major producer of both semiconductors and the devices that use them. Last month, Trump and Chinese President Xi Jinping met in South Korea and agreed to set aside their trade issues temporarily.
