US Commerce Secretary Howard Lutnick stated on Sunday that the Trump administration’s decision to partially free items like smartphones and tablets from hefty new trade tariffs was not permanent and that the items would soon be subject to a new scheme targeted at the semiconductor industry.
They are exempt from the reciprocal tariffs, but they are included in the semiconductor tariffs, which will be implemented in a month or two, Lutnick said, making it clear that the brief easing of consumer electronics was merely a pause before a more judicious course of action.
In a shift that was anticipated to gain tech giants like Apple, Samsung, and Nvidia, the White House on Friday had excluded some technology from the broad-ranging “reciprocal taxes” introduced earlier this month. According to a US Customs and Border Protection report, the deduction included devices like smartphones, tablets, flat-panel screens, hard drives, and cards.
Semiconductor production equipment was also exempt from any additional quick taxes.
However, US President Donald Trump instantly disagreed with Lutnick’s explanation just hours later. He claimed in a post on Truth Social that there was no such thing as a “exception,” claiming that the items were simply being moved to a different type and would still be subject to a 20 % price.
Trump wrote,” Nothing is letting go of the hook.” We won’t be held hostage by various nations, especially those that trade with China.
As part of a force to rehabilitate important business, the White House now intends to establish a new influx of national security studies aimed at the broader electronics and semiconductor supply chain, according to AFP. Lutnick backed up that statement, stating that semiconductors must be produced in America. We can’t rely on Southeast Asia for all the things that happen for us.
The Trump administration’s confusing series of tariff changes, with abrupt reversals causing uncertainty for both businesses and investors, are the result of this temporary reprieve. Lutnick confirmed that the US government was developing a separate tariff model to “encourage” US semiconductor and pharmaceutical manufacturing.
Some analysts saw the exemptions on Friday as a response to the criticism of rising tech costs. The administration’s extensive tariffs had affected the” Magnificent Seven” of the tech sector, including Apple, Microsoft, Nvidia, Tesla, Meta, Alphabet, and Amazon, causing a$ 2.1 trillion decline from April 2 through the administration’s massive tariffs, AP reported. After Trump halted tariffs for nations outside of China, that loss diminished, but Friday’s contradictory language added to the doubts.
China has meanwhile urged the US to completely halt the tariffs. According to AFP, Beijing’s commerce ministry said the Friday exemption “represents a small step” and advised that the US should” completely cancel” its aggressive trade strategy.
Trump has promised to provide more information on Monday, but officials have confirmed that China is still barred from any longer tariff pause. There are no plans for discussions between Trump and Chinese President Xi Jinping, according to AFP.
On Monday, Trump is expected to further clarify the administration’s position on semiconductors and electronics.
