The United States is preparing to impose fresh tariffs on smartphones, computers, and semiconductors imported from China, despite granting temporary exemptions on some of these products last week.
US Commerce Secretary Howard Lutnick confirmed on Sunday that the new levies—separate from the steep reciprocal tariffs that were recently raised to 125 per cent—will be introduced within the next two months. Speaking on ABC’s This Week, Lutnick said the upcoming tariffs will specifically target key sectors like semiconductors and pharmaceuticals under a national security framework aimed at encouraging domestic production.
The announcement follows the Trump administration’s decision on Friday to exclude more than 20 categories of electronics from its latest round of reciprocal tariffs. This was seen as a temporary relief for major tech companies such as Apple and Dell, which depend on Chinese manufacturing. However, Lutnick clarified that these exclusions do not apply to the incoming sectoral tariffs.
“They’re exempt from the reciprocal tariffs, but not from the new semiconductor tariffs, which are expected within a month or two,” Lutnick said. “These are critical to national security and should be made in America.”
The ongoing trade tensions have contributed to significant market volatility. Since President Trump took office in January, the S&P 500 index has dropped by over 10 per cent. Meanwhile, China raised its tariffs on US goods to 125 per cent on Friday, matching Washington’s move. Beijing is reportedly reviewing the potential impact of the recent US exemptions.
Critics argue that the administration’s shifting trade strategy is creating uncertainty. Senator Elizabeth Warren called the approach “chaos and corruption”, warning of economic harm. Billionaire investor Bill Ackman urged Trump to pause the reciprocal tariffs for 90 days and reduce them to 10 per cent to avoid business disruption and allow space for negotiations.
White House trade officials have offered mixed signals. While the US has opened talks with several countries, China is notably absent from the list. Trade Representative Jamieson Greer said no talks are planned between Trump and Chinese President Xi Jinping, blaming China for escalating the dispute.
Investor Ray Dalio warned that the tariff battle could push the US economy into a recession—or worse—if not handled carefully.
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