President Donald Trump has announced plans to impose new tariffs on imported semiconductors, with an announcement expected later this week. This move is part of his strategy to address the growing concerns over the semiconductor sector and promote domestic manufacturing. Trump emphasized the need to reduce reliance on foreign-made chips, indicating flexibility for certain companies while discussing potential tariffs. His statements raise doubts about whether products like smartphones and computers will remain exempt from tariffs in the future.
Earlier, the White House had excluded tech products such as smartphones and computers from tariffs, offering some hope to the tech industry that these products might escape the growing trade tensions with China. However, Trump’s recent comments suggest that these exclusions may be short-lived as he plans to reset the U.S.-China trade dynamic in the technology sector. The announcement of a national security investigation into the semiconductor industry further signals a tightening of trade relations with China.
Trump’s declaration that critical technology products from China, including semiconductors, will face new tariffs within the next two months has added uncertainty to the situation. This follows a statement from Commerce Secretary Howard Lutnick, who clarified that a special tariff would be imposed on electronics, alongside other duties targeting the semiconductor and pharmaceutical sectors. These tariffs will not fall under the existing reciprocal tariffs, which recently saw a 125% levy on Chinese imports.
The back-and-forth between Trump and his administration has led to significant market volatility, with Wall Street experiencing some of its largest swings since the COVID-19 pandemic in 2020. The proposed new tariffs on consumer electronics could potentially impact the affordability of products like smartphones and laptops, raising concerns about the broader economic implications of the escalating trade conflict.
Source: Guardian