Washington Slows Chip Tariff Timeline as Fears of China Backlash Intensify

The United States is quietly tapping the brakes on its semiconductor tariff rollout, according to people familiar with internal deliberations. The delay marks a cautious shift in strategy as the administration attempts to prevent a renewed rupture with China.
Officials reportedly informed industry leaders that earlier expectations of a swift rollout have softened. Many inside the administration fear that sudden tariff escalation could disrupt rare earth supplies, which are vital for US chip manufacturers.
Insiders emphasize that the policy has not been abandoned. Triple-digit tariffs remain possible at any moment, but the administration wants to avoid miscalculations that could spark economic retaliation.
The White House and Commerce Department deny any modification in strategy. They maintain that commitments to domestic manufacturing and national security remain unchanged, even as they decline to provide a timetable.
Tariff delays come as inflation continues to affect American households. New taxes on chip imports could raise prices across tech-driven products, including cars, smartphones and appliances.