The US government is moving more slowly on semiconductor tariffs amid internal concerns about provoking a backlash from China and raising consumer prices.
People familiar with the matter say officials have privately adjusted expectations, signaling that immediate tariff action is unlikely.
Rare earth dependencies — a cornerstone of chip production — remain at the heart of Washington’s caution. Any Chinese retaliation could hit US manufacturers hard.
Despite internal hesitations, the White House denies altering its stance. Officials reaffirm commitments to national and economic security.
Tariffs could push electronics prices higher, affecting households already strained by inflation and rising interest rates.