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US Prez Donald Trump says smartphone tariff relief was temporary, new duties coming

by admin April 14, 2025
April 14, 2025
US Prez Donald Trump says smartphone tariff relief was temporary, new duties coming

A recently announced pause on steep US tariffs for certain Chinese electronics, including smartphones and laptops, appears to be merely a temporary reprieve, according to top administration officials.

Former President Donald Trump emphatically signaled that these key technology sectors are far from clear of trade pressures, promising further action amidst the ongoing economic friction between Washington and Beijing.

The White House had seemingly offered an olive branch on Friday, excluding a range of popular electronic goods from the punishing reciprocal tariffs levied against China.

This move initially sparked optimism on Wall Street, with expectations of a market recovery.

Shares in tech giants like Apple and chip manufacturer Nvidia were poised for gains following the news that tariffs on their crucial imports would be lifted for a 90-day period.

However, the sense of relief proved ephemeral. By Sunday, the administration’s messaging shifted dramatically, reasserting a hardline stance.

No ‘getting off the hook’: Trump promises new tariff scrutiny

In a characteristic social media post, Donald Trump directly addressed the exemption, seeking to reframe the narrative.

“There was no Tariff ‘exception’,” Trump stated on his Truth Social platform Sunday.

These products are subject to the existing 20% Fentanyl Tariffs, and they are just moving to a different Tariff ‘bucket.’

Beyond clarifying the temporary nature of the exemption, Trump pledged a more extensive trade offensive.

He announced plans for a national security trade investigation targeting the semiconductor industry and, more broadly, the “whole electronics supply chain.”

His rationale remained consistent with his administration’s focus on economic nationalism: “We will not be held hostage by other Countries, especially hostile trading Nations like China,” he added.

‘Made in America’ push: new tariffs loom for critical tech

Adding weight to Trump’s pronouncements, Commerce Secretary Howard Lutnick confirmed that the excluded electronic products are slated to face different, newly conceived duties within the near future.

Speaking Sunday, Lutnick detailed plans for what he termed “a special focus-type of tariff” specifically targeting smartphones, computers, and other electronics, anticipated within “a month or two.”

These measures, he explained, would run parallel to distinct sectoral tariffs aimed at semiconductors and pharmaceuticals, operating outside the framework of the broader reciprocal tariffs imposed on China.

“He’s saying they’re exempt from the reciprocal tariffs, but they’re included in the semiconductor tariffs, which are coming in probably a month or two,” Lutnick clarified in an ABC interview. He explicitly linked this strategy to national security concerns and the goal of reshoring manufacturing.

“These are things that are national security, that we need to be made in America,” he predicted, suggesting the levies would incentivize domestic production.

Policy whiplash rocks markets, fuels economic worries

This latest turn underscores the volatile nature of the US-China trade conflict under Trump, a dynamic characterized by escalating threats and abrupt policy shifts.

The tit-for-tat exchanges have seen US levies on Chinese goods climb significantly (reportedly reaching 145% in some contexts, countered by Beijing’s 125% on US imports), creating a climate of intense brinkmanship between the world’s two largest economies.

The constant back-and-forth has reverberated through financial markets. Trump’s tariff pronouncements and subsequent reversals have been blamed for triggering the most severe volatility on Wall Street since the height of the Covid pandemic in 2020.

Since Trump assumed office on January 20th, the benchmark Standard & Poor’s 500 index has declined by over 10%.

Previous instances of tariff announcements followed by pauses – such as the 90-day reprieve offered to many trade partners (though notably not China) after initial broad declarations – have sent shockwaves, prompting investor flight from government bonds, dollar depreciation, and dips in consumer confidence.

Economists continue to warn that such broad tariff strategies risk hindering economic growth and stoking inflation.

Criticism mounts as China calls for cancellation

The administration’s approach continues to draw criticism. Speaking before Trump’s Sunday social media post, Democratic Senator Elizabeth Warren offered a sharp rebuke on ABC’s ‘This Week’: “There is no tariff policy – only chaos and corruption.”

Meanwhile, Beijing reacted cautiously to the initial Friday exemption announcement.

China’s commerce ministry described the move as merely “a small step,” reiterating its demand that the Trump administration should “completely cancel” its entire tariff strategy.

Amidst the escalating trade tensions, China has actively worked to bolster relationships elsewhere, with President Xi Jinping scheduled to visit Vietnam on Monday at the start of a tour through Southeast Asia, signaling a strategic pivot towards regional partners.

The uncertainty surrounding US trade policy, particularly towards China’s critical tech sector, thus remains a defining feature of the global economic landscape.

The post US Prez Donald Trump says smartphone tariff relief was temporary, new duties coming appeared first on Invezz

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