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US Backpedals on Chip Tariffs as Officials Fear Disrupting Rare Earth Supply

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A slowdown in the rollout of semiconductor tariffs is emerging as US officials privately caution that imposing new taxes too aggressively could provoke China and disrupt key mineral imports.
Stakeholders were told in recent meetings that the administration is reconsidering the pace of implementation. Rare earth minerals — mostly sourced from China — remain a central concern.
Tariffs may still be introduced, but insiders say the timeline is now fluid. Decisions depend on both diplomatic signals and domestic economic indicators.
White House and Commerce Department representatives deny any shift in strategy but refuse to provide a clear schedule for rollout.
Economists warn that imposing high tariffs could increase prices for electronics, vehicles and industrial technologies, fueling inflationary pressures already affecting US households.

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