US Slows Semiconductor Tariff Plan as Officials Warn of China Retaliation Risks

The Biden–Trump transition period has brought new uncertainty to Washington’s semiconductor tariff plans, as officials now signal caution in implementing the long-promised measures. Sources familiar with internal conversations say the administration is re-evaluating its approach to avoid inflaming tensions with China.
Government and industry stakeholders were quietly briefed in recent days that tariff action may not be imminent, despite repeated assurances earlier this year. Advisers fear sweeping penalties could disrupt critical supply chains and reignite a damaging trade dispute.
Rare earth minerals in particular remain a major point of concern, with several insiders noting that any retaliation from Beijing could choke off essential components domestically. Although the administration has not abandoned the tariff option, insiders say officials now view timing as crucial.
White House and Commerce Department spokespeople deny adjusting their strategy, though neither has offered clarity on when tariffs might be introduced. Both departments continue to emphasize commitments to national security and reshoring.
Economically, the stakes are high. New duties on imported chips could ripple through consumer markets, raising prices on everything from smartphones to dishwashers. With inflation still hovering above target, the government is approaching the decision with heightened sensitivity.