US Seeks to Prevent Trade War as Semiconductor Tariffs Quietly Slow Down

The United States is delaying its semiconductor tariff rollout as officials weigh the consequences of provoking China, according to people briefed on private discussions. The move marks a shift in tone after months of signaling urgency.
Industry insiders were told that aggressive tariffs could disrupt rare earth imports needed for chip manufacturing. Officials believe missteps could inadvertently reignite a damaging trade war.
Although plans for tariffs near 100% remain on the table, insiders say the administration is debating both scope and timing. Nothing is final, but caution now appears to outweigh pressure for immediate action.
The White House denies any policy shift, though it abstains from giving a clear timeline. Commerce officials echoed that stance while providing little additional clarity.
Consumer prices remain a central concern. Tariffs would likely increase costs for electronics and other devices, feeding into inflation already affecting households.