The Trump administration is reportedly contemplating a delay in imposing tariffs on semiconductors, a move that marks a significant shift from President Donald Trump‘s earlier stance.
Chip Tariff Decision Under Review
The officials have been communicating this to both government and private industry stakeholders over the past few days, Reuters reported on Wednesday, citing sources familiar with the matter.
This decision has not been made public until now. The administration is reportedly taking a cautious approach to avoid escalating trade tensions with China, which could lead to a trade war and disrupt the supply of essential rare earth minerals.
Although no final decision has been made, sources warn that triple-digit tariffs remain a possibility at any moment, as per the publication.
The Department of Commerce did not immediately respond to Benzinga‘s request for comment.
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U.S.–China Tech Clash In Focus
The report comes on the heels of Treasury Secretary Scott Bessent recently stating that a rare earth deal with China could come as early as Thanksgiving.
In September, President Trump reiterated his warning of imposing tariffs on semiconductor imports from companies that did not commit to shifting production to the U.S. in an attempt to boost domestic semiconductor manufacturing. In the same month, the Trump administration withdrew permissions that allowed Samsung Electronics (OTC:SSNLF) and SK Hynix (OTC:HXSCL) to obtain U.S. chipmaking equipment for their operations in China.
The semiconductor industry has been at the center of the U.S.-China trade tensions. In August, Apple Inc. (NASDAQ:AAPL) secured nearly half of Taiwan Semiconductor Manufacturing Co. Ltd.‘s (NYSE:TSM) initial 2nm chip production capacity, a move seen as a strategic defense against Trump’s proposed tariffs on imported semiconductors.
Notably, the Trump administration has been making adjustments to its tariff policies in recent weeks. Earlier this month, Trump rolled back tariffs on coffee, beef, and other agricultural imports amid rising prices and mounting pressure over the cost-of-living crisis.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
