Exclusive-Trump's semiconductor tariff plan likely delayed, officials say

By Laurie Chen, Trevor Hunnicutt and Jeffrey Dastin

WASHINGTON (Reuters) -U.S. officials are privately saying that they might not levy long-promised semiconductor tariffs soon, potentially delaying a centerpiece of President Donald Trump’s economic agenda.

Officials relayed these messages over the last several days ​to stakeholders in government and private industry, according to two people with direct knowledge of the matter and a third person briefed on the conversations.‌ A fourth person following the matter also said the administration was taking a more cautious approach to avoid provoking China. The discussions have not been previously reported.

Trump aides are taking their time on chip tariffs as ‌they work to avoid a rupture with Beijing over trade issues, which would risk a return to a tit-for-tat trade war and disruption of the flow of critical rare earth minerals, according to two of the people.

Those people cautioned that no decision is final until the administration signs off on it, and also said that triple-digit tariffs could be imposed at any time. The sources spoke anonymously in order to recount private conversations about policy deliberations.

Trump said in August that the United States would impose a tariff of about 100% ⁠on imports of semiconductors but exempted companies that are manufacturing ‌in the U.S. or have committed to do so. Privately, over the last several months, Washington officials had told people that the administration would roll out the tariffs soon. That guidance has now changed as the administration has continued to debate the ‍timing and other details.

A White House official and a Commerce Department official, asked about the discussions, disputed that the administration had adjusted its posture.

"That is not true," the White House official said, without specifying what was incorrect. "The administration remains committed to reshoring manufacturing that’s critical to our national and economic security." The Commerce official said,​ "There is no change in department policy regarding semiconductor 232 tariffs." Neither one specified how soon tariffs that have been threatened since the early days ‌of the Trump administration would be finalized, nor did they offer any other details.

TRUMP FACES PRESSURE ON CONSUMER PRICES

Any decision by the administration to slow down or narrow the scope of chip tariffs would come at a sensitive time for Trump. The Republican president is facing growing consumer angst over prices heading into the holiday shopping season.