Former President Donald Trump has declared that recent exemptions on electronic products from Chinese import tariffs will be temporary, promising new targeted measures against the semiconductor sector and electronics supply chain.
Despite Friday's announcement that smartphones, computers, and semiconductors would be spared from some tariffs, Trump clarified on Sunday that these products were simply being moved to a "different tariff bucket" rather than receiving a true exemption.
"We will not be held hostage by other Countries, especially hostile trading Nations like China," Trump stated on his Truth Social platform, announcing plans for a national security investigation into the semiconductor industry.
Commerce Secretary Howard Lutnick expanded on these plans, indicating that critical technology products from China would face new duties within two months. These "special focus-type" tariffs would specifically target smartphones, computers, and electronics, separate from existing reciprocal tariffs.
The ongoing trade tensions have already pushed US tariffs on Chinese goods to 145%, with Beijing responding with 125% levies on US imports. China's Commerce Ministry viewed the temporary exemptions as a minor correction to what they called an "erroneous unilateral practice."
Market reactions have been volatile, with US stocks experiencing significant swings. Companies like Apple and Nvidia initially saw share prices rise following the exemption announcement, though uncertainty remains about future trade policies.
The policy shifts have drawn criticism from some political figures, including Democratic Senator Elizabeth Warren, who described the situation as showing "no tariff policy – only chaos and corruption."
These developments come as China strengthens regional ties, with President Xi Jinping embarking on a Southeast Asian tour while maintaining that protectionism "leads nowhere" and trade wars produce "no winners."