Washington Reconsiders Chip Tariffs as Rare Earth Supply Threat Looms

US officials are quietly reevaluating semiconductor tariff plans as concerns grow that China could retaliate by restricting rare earth exports — a critical component of the chip supply chain.

Industry and government stakeholders were told in recent briefings that tariff rollout may be slower than expected. Officials are wary of igniting a new trade war.

Tariffs up to 100% remain under consideration, but insiders say internal debates are now focused on avoiding unintended economic consequences.

Publicly, the White House denies altering its policy stance. No timeline for implementation was provided.

Tariff-driven cost increases could push consumer electronics prices higher, fueling inflation and complicating political messaging.