U.S. Commerce Secretary Howard Lutnick revealed on Sunday that smartphones, computers, and other electronics recently exempted from steep tariffs on imports from China will soon face new duties. These new tariffs, along with those targeting semiconductors, are expected to be enacted within the next two months.
Lutnick’s comments on ABC’s This Week shed light on the shifting landscape of President Donald Trump’s tariff plans, which have caused market turbulence since their announcement on April 2, dubbed “Liberation Day.” On Friday, the Trump administration temporarily lifted reciprocal tariffs on certain electronics, benefiting technology companies like Apple and Dell Technologies. However, Lutnick indicated this reprieve may be short-lived, with a special focus tariff on these products, including semiconductors, set to come in a month or two.
Trump’s evolving tariff strategy has contributed to significant uncertainty for investors and businesses, with the S&P 500 down more than 10% since Trump took office. Lutnick suggested that the new tariffs, aimed at securing national security, would push U.S. production of critical technologies like semiconductors and smartphones.
While these measures could shift production to the U.S., there remains growing concern over their long-term economic impact. The tariffs are seen as a risk to both U.S. and global markets, particularly as Beijing retaliated by increasing its tariffs on U.S. goods to 125%. Additionally, the tech product exclusions apply only to reciprocal tariffs, with Trump’s previous 20% duties on Chinese imports related to fentanyl still in place.
Billionaire investor Bill Ackman and U.S. Senator Elizabeth Warren have both criticized the volatility of the tariff policies, calling for more consistency and a potential pause in tariffs to avoid further market disruption. With trade talks with China still in flux, the outcome of these new measures could have far-reaching implications for U.S. businesses and the broader economy.
Source: Swifteradio.com.
