US officials privately say they may not soon impose long-promised semiconductor tariffs, according to Reuters. Officials have conveyed these messages over the past few days to stakeholders in government and the private sector, according to two people with direct knowledge of the matter and a third person familiar with the conversations. A fourth person tracking the matter also said the administration was taking a more cautious approach to avoid provoking China.
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Trump aides are taking their time imposing chip tariffs while working to avoid falling out with Beijing over trade issues, which could risk reverting to a tit-for-tat trade war and disrupting the flow of important rare earth minerals, according to two of the people. These people warned that there is no final decision until the administration signs it, and they also said that triple-digit tariffs could be imposed at any time.
President Donald Trump said in August that the United States would impose a tariff of about 100% on semiconductor imports, but would exempt companies that manufacture in the United States or have committed to doing so. Over the past few months, Washington officials have privately told people that the administration will roll out tariffs soon. That guidance has now changed as management continues to discuss timing and other details.
When asked about the discussions, a White House official and a Commerce Department official disputed that the administration had modified its position. “This is not true,” the White House official said, without specifying what was wrong. “The Administration remains committed to bringing manufacturing back home which is critical to our national and economic security.” “There is no change in the ministry’s policy regarding semiconductor 232 tariffs,” the trade official said. Neither of them specified when the tariffs that have been threatened since the early days of the Trump administration would be completed, nor did they provide any other details.
Trump faces pressure on consumer prices
Any decision the administration makes to slow or narrow the scope of chip tariffs would come at a sensitive time for Trump. The Republican president faces growing consumer concerns about prices as the holiday shopping season approaches.
Source: Market intelligence platform IndexBox
