Washington’s semiconductor tariff plan is slowing as officials worry that imposing steep duties could worsen inflation and disrupt sensitive US-China ties.
Insiders briefed on internal conversations say officials now favor a more deliberate approach. They fear China might restrict rare earth exports, harming US industries dependent on those materials.
Tariffs are still possible, but timing remains uncertain. Internal debates center on national security, economic pressures and trade stability.
White House and Commerce officials deny altering their strategy but decline to offer specifics on when tariffs might take effect.
Higher chip prices could cascade into consumer electronics and appliances, further straining household budgets amid persistent inflation.