US Walks Back Urgency on Chip Tariffs as Concerns Over China Retaliation Grow

The Biden-Trump transition period has complicated plans for sweeping semiconductor tariffs, with officials now signaling that rollout may not be imminent. The hesitation highlights broader concerns about Chinese countermeasures.
Industry parties were told this week that the administration is reevaluating its next steps. The fear is that harsh tariffs would provoke China to restrict rare earth exports, which could cripple semiconductor production.
While tariffs remain on the table, insiders say the government is now weighing national security goals against economic risks. Discussions continue behind closed doors.
White House and Commerce officials deny adjusting policy, reiterating commitments to domestic production. They have not, however, clarified when any tariffs might take effect.
With inflation still troubling US consumers, imposing additional costs on electronics and gadgets could create new political challenges.