US President Donald Trump announced that some tech products, including smartphones, chipmaking equipment, and computers, would be temporarily exempt from the steep tariffs on Chinese imports. This was seen as a relief for companies like Apple, Nvidia, and Microsoft. However, on Sunday, Trump and other US officials clarified that these products would still face tariffs in the future as part of a broader investigation into semiconductor supply chains.
Trump, in a post on Truth Social, insisted that no one would be “off the hook” for what he described as unfair trade practices, especially China. US Commerce Secretary Howard Lutnick explained that while these products were temporarily excluded from the new “reciprocal” tariffs, they would eventually fall under separate tariffs related to semiconductor investigations.
Trump also wrote that the US would closely examine semiconductors and the entire electronics supply chain in the upcoming National Security Tariff Investigations. This has left tech companies uncertain about the future of tariffs on their products.
The confusion over tariffs continues to affect markets, especially tech stocks, which have fluctuated wildly following Trump’s tariff announcements. Wall Street is increasingly concerned about the economic impact of these measures, and some experts warn they could lead to a recession.
China has called on the US to remove the “reciprocal” tariffs, emphasizing that there are no winners in a trade war. The Chinese government also expressed its displeasure with US tariffs, although it is evaluating the impact of the latest measures.
In the short term, Apple has shifted some iPhone production to India to avoid the higher tariffs in China. The company makes around 80% of its iPhones in China, but India offers a cheaper alternative for manufacturing with lower tariffs.
Trump has continued to raise tariffs on Chinese imports, with rates as high as 145% on certain products, while offering a 90-day pause on reciprocal tariffs for other countries. This is part of his broader effort to reduce trade imbalances and revive American manufacturing.
Some market observers, including hedge fund manager Bill Ackman, have urged Trump to extend tariff relief to all Chinese products to avoid further economic strain.
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