Plans to impose heavy tariffs on imported semiconductors — a signature Trump initiative — appear to be slowing, according to several people with knowledge of internal discussions. The change in momentum reflects deeper unease about upsetting Beijing.
Sources briefed on the conversations say officials have told industry leaders to expect a more cautious rollout. A major fear is that China could retaliate by restricting rare earth exports, which US industries depend upon.
Though tariffs up to 100% remain under consideration, the internal tone has shifted. Discussions now focus on balancing national security with economic stability and avoiding unnecessary shocks to supply chains.
The White House publicly denies adjusting its strategy but has offered no timeframe for implementing the tariffs. Commerce Department officials say they have not altered policy but declined further comment.
Economists warn of potential downstream effects: tariffs could increase costs of smartphones, computers, appliances and vehicles. With consumers already facing high prices, Washington is under pressure to limit inflation risks.