Key takeaway:
Smartphone and electronics tariff exemptions seen as temporary, not negotiable
Semiconductor levies expected “in a month or two,” as part of Trump’s reshoring push
Lawmakers criticize administration’s unpredictable and sweeping tariff strategy
A temporary exemption from U.S. tariffs on smartphones and consumer electronics may offer only short-term relief, with the Biden administration preparing a fresh wave of import duties targeting semiconductors and pharmaceuticals, Commerce Secretary Howard Lutnick said Sunday.
Appearing on ABC’s "This Week," Lutnick clarified that while tech products were excluded from last week's sweeping tariff implementation, they are still squarely in the crosshairs of President Trump’s long-term plan to bring critical manufacturing back to U.S. soil.
“These are coming soon,” Lutnick said. “They’re included in the semiconductor tariffs which are coming in probably a month or two.”
Exempt but not safe
Markets rallied briefly last Friday when the White House announced a 90-day pause on certain tariffs, including those on smartphones and electronics, amid global backlash and intense economic uncertainty. But Lutnick underscored that the move was not a sign of softening.
“It’s not a permanent sort of exemption,” he said. “He’s just clarifying that these are not available to be negotiated away by countries.”
This tough stance suggests that high-tech imports, especially semiconductors and essential pharmaceutical components, will soon face unwavering levies, as Trump pushes forward with his industrial reshoring agenda.
“We need our medicines and we need semiconductors and our electronics to be built in America,” Lutnick said. “We can’t be beholden and rely upon foreign countries for fundamental things that we need.”
A volatile global trade landscape
President Trump shocked markets earlier this month when he imposed 10% tariffs on nearly every country — with steeper penalties for nations running large trade surpluses with the U.S. While temporary reprieves have been issued, the administration is now under pressure to negotiate bilateral deals within the 90-day window.
Despite reassurances, the unpredictability of these measures has rattled economists and lawmakers alike.
Warren: “It’s all chaos and corruption”
Senator Elizabeth Warren (D-Mass.) blasted Trump’s approach, calling the tariff campaign an erratic and uncoordinated policy that has injected chaos into global markets and opened the door to insider trading risks.
“There is no tariff policy,” Warren said. “It’s just all chaos and corruption.”
She also pointed to the short-lived nature of Trump’s bold claims, citing his tweet of “I WILL NOT BACK DOWN” shortly before reversing course on several key tariffs.
“What’s the emergency we have with Belgium or South Korea?” Warren asked, criticizing the lack of coherent justification behind the blanket tariffs.
Democrats in the Senate have urged the Securities and Exchange Commission to investigate allegations of market manipulation tied to tariff-related policy swings and their potential impact on stock trades by Trump associates.
As the White House doubles down on reshoring key industries and confronting foreign reliance, the tech sector — once temporarily spared — may soon be facing tariffs head-on, leaving consumers and investors bracing for higher costs and prolonged uncertainty.