Reuters: “Trump’s Plan to Impose Tariffs in August Continues to Be Delayed”
Delayed Due to U.S.-China Tensions and Inflation Concerns
The semiconductor tariffs that the U.S. planned to impose starting in August are likely to be postponed due to the impact of U.S.-China tensions and concerns over rising prices.
According to Reuters on the 19th (local time), U.S. government officials have recently communicated to key figures in both government and the private sector that the imposition of semiconductor tariffs may not happen soon.
On August 6, President Trump announced he would impose a tariff of about 100% on semiconductors, stating that it would affect “all chips and semiconductors entering the U.S.” However, he specified that companies building or promising to build semiconductor manufacturing plants in the U.S. would be exempt, as part of a plan to revive American manufacturing through semiconductors. On August 15, he reiterated that the semiconductor tariffs would be set “the following week.”
However, since then, President Trump has not issued an announcement regarding tariffs in the semiconductor sector.
Reuters analyzed that concerns over conflicts with China and domestic price issues in the U.S. are hindering the Trump administration from executing its decision.
Implementing high tariffs on semiconductors could provoke China, with whom there is currently a trade truce, as China might resort to controlling rare earth exports—a move the U.S. wishes to avoid.
Concerns over inflation, especially ahead of the American shopping season involving Thanksgiving and Christmas, are also cited as reasons for the delay in imposing tariffs, which have not been implemented for over three months.
Reuters reported that the U.S. government, including the White House and the Department of Commerce, stated there is no change in government policy regarding semiconductor tariffs. However, they did not mention the timing of the introduction of these tariffs.