Just two days after the Donald Trump administration exempted smartphones, computers and other electronics from new import tariffs, the US president has again spoken of his intention to impose tariffs on them, and Commerce Secretary Howard Lutnick said that the exception for chips is temporary.
Just two days after the Donald Trump administration exempted smartphones, computers and other electronics from new import tariffs, the US president has again spoken of his intention to impose tariffs on them, and Commerce Secretary Howard Lutnick said that the exception for chips is temporary.
The tariff deferral for tech companies was granted in the form of a rule for Customs and Border Protection that exempted high-tech imports from Trump’s so-called reciprocal tariffs, including tariffs on China, the NYT reported.
Last week, the US president suspended tariffs on nearly 60 countries, but his administration continued to implement a new 145% tax on Chinese exports.
The tariff exemptions covered a wide range of goods, such as computers, smartphones, modems and flash drives, and it came as a big relief to Apple and other American tech giants that rely on Chinese factories to produce critical components and popular gadgets.
Apple executives have even been in contact with Trump administration officials about Chinese tariffs in recent days, according to sources.
But on April 13, Trump and his top aides called the exemptions a temporary reprieve while the administration prepares more targeted tariffs on key technology imports. The administration is expected to take the first step toward imposing new tariffs as early as this week. It is expected to begin with an investigation to determine the national security impact of semiconductor imports.
«No one will get off the hook for the unfair trade balances and non-monetary tariff barriers that other countries use against us, especially China, who certainly treats us the worst!» Mr. Trump added.
US Commerce Secretary Howard Lutnick said that Trump could announce new tariffs «in the next month or two» that would target not only semiconductors but also pharmaceutical imports.
The Trump administration already exempted various types of semiconductors from reciprocal tariffs on April 2. But the chaotic changes in tariff policy and exemptions in recent days have confused businesses that depend on trade with China. Some investors and company executives have publicly welcomed the decision to drop tariffs on electronics, which account for about a quarter of U.S. imports from China.
But there are no signs the trade war with China is ending anytime soon. And potential new tariffs on chips threaten to further hurt the tech industry, even as major lobbying groups representing Intel, Nvidia and other companies have urged the Trump administration to strike trade deals that would ultimately lower trade barriers around the world.
Recall that after Trump announced the end of tariffs, shares of the «Magnificent Seven» of leading US tech companies, which include Alphabet, Amazon, Apple, Meta, Microsoft, NVIDIA and Tesla, rose by more than $1 trillion. That’s roughly the size of the Dutch economy.
Apple decided to take advantage of this pause to charter cargo flights and transport 600 tons of iPhones (about 1.5 million smartphones) to the United States from India.
