President Trump settled the controversy over the tariffs on iPhones and other Chinese-made devices — saying that there is no such thing as a “exemption” and that recent duties are coming.
“NOBODY is getting ‘off the hook,’” Trump said on Truth Social Sunday. “There was no Tariff ‘exception’ announced on Friday. These products are subject to the present 20% Fentanyl Tariffs, and so they are only moving to a special Tariff ‘bucket.’”
“We’re taking a take a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN within the upcoming National Security Tariff Investigations.”
Late within the day on Friday, Trump’s team filed a rule that exempted a myriad of electronic devices from the president’s steep “reciprocal” tariff on Chinese imports to the US.
The ruling appeared to grant a reprieve for Apple and other consumer electronics makers, who were facing tariffs of as much as 145% under Trump’s sweeping recent rules.
Greater than 80% of Apple products are assembled in China, in response to data from Evercore ISI. Apple CEO Tim Cook has courted close relations with Trump amid the tariff push.
Even before Trump upped the ante on China, experts were suggesting that top iPhone models could increase in price to $2,300 under the tariff regime.
Prior to Trump’s clarification Sunday, Commerce Secretary Howard Lutnick publicly explained that electronics being imported from China will soon face their very own unique tariff.
“So what he’s doing is he’s saying they’re exempt from the reciprocal tariffs, but they’re included within the semiconductor tariffs, that are coming in probably a month or two. So these are coming soon,” Lutnick told ABC News’ “This Week” on Sunday.
“All those products are going to return under semiconductors, and so they’re going to have a special focus style of tariff to be sure that that those products get restored.”
Last Wednesday, as Trump’s suite of customized “reciprocal” tariff rates were set to enter effect, the president abruptly reversed course and announced a 90-day pause while his team negotiates recent deals with various countries. Trump remarked that folks were “getting a bit bit yippy, a bit bit afraid” as markets cratered amid tariff fears.
Trump kept the ten% baseline tariff on virtually all imports in effect and announced a 125% tariff against goods and services coming in from China. White House officials clarified that China will still face a 20% tariff announced earlier this 12 months because of fentanyl concerns, which brings the overall rate on most Chinese imports to 145%.
China is America’s third-largest trading partner
“What has been exposed is that we want to make products in the US, and that we are going to not be held hostage by other Countries, especially hostile trading Nations like China, which can do the whole lot inside its power to disrespect the American People,” Trump added.
Straight away, electronics products from China still face other tariffs, reminiscent of the 20% rate Trump imposed earlier this 12 months amid his complaints against China’s role within the fentanyl crisis.
“We want to have semiconductors, we want to have chips, and we want to have flat panels — we want to have this stuff made in America. We are able to’t be reliant on Southeast Asia for the entire things that operate for us,” Lutnick added.
Lutnick explained that the Trump administration is seeking to add tariff incentives to “encourage” the pharmaceutical industry to revive its manufacturing within the US as well.
“We are able to’t be beholden and rely on foreign countries for fundamental things that we want,” Lutnick argued. “So this just isn’t like a everlasting kind of exemption. He’s just clarifying that these aren’t available to be negotiated away by countries. These are things which can be national security that we must be made in America.”
Before Trump paused the customized tariff rates last Wednesday, his top lieutenants had been publicly adamant that the president didn’t intend to incorporate any exemptions and that his protectionist shift was not a negotiating ploy.
Senior counselor for trade and manufacturing Peter Navarro again on Sunday insisted that Trump’s “policy is not any exemptions, no exclusions,” despite the reprieve for electronics.
“The issue, interestingly for chips, because this may be very complex stuff, is that we don’t buy loads of chips, like in bags. We buy them in products. So what Secretary of Commerce Howard Lutnick is doing as we speak is an investigation of the chip supply chain,” Navarro told NBC’s “Meet the Press” on Sunday.
It just isn’t clear what rate the Trump administration is eyeing for its planned semiconductor tariff.
Former President Joe Biden attempted to re-shore semiconductor manufacturing through the 2022 bipartisan CHIPS and Science Act, which featured subsidies to chip firms. Trump has been critical of the CHIPS Act and argued that tariffs are a more practical technique of bringing back semiconductor production to the US.
President Trump settled the controversy over the tariffs on iPhones and other Chinese-made devices — saying that there is no such thing as a “exemption” and that recent duties are coming.
“NOBODY is getting ‘off the hook,’” Trump said on Truth Social Sunday. “There was no Tariff ‘exception’ announced on Friday. These products are subject to the present 20% Fentanyl Tariffs, and so they are only moving to a special Tariff ‘bucket.’”
“We’re taking a take a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN within the upcoming National Security Tariff Investigations.”
Late within the day on Friday, Trump’s team filed a rule that exempted a myriad of electronic devices from the president’s steep “reciprocal” tariff on Chinese imports to the US.
The ruling appeared to grant a reprieve for Apple and other consumer electronics makers, who were facing tariffs of as much as 145% under Trump’s sweeping recent rules.
Greater than 80% of Apple products are assembled in China, in response to data from Evercore ISI. Apple CEO Tim Cook has courted close relations with Trump amid the tariff push.
Even before Trump upped the ante on China, experts were suggesting that top iPhone models could increase in price to $2,300 under the tariff regime.
Prior to Trump’s clarification Sunday, Commerce Secretary Howard Lutnick publicly explained that electronics being imported from China will soon face their very own unique tariff.
“So what he’s doing is he’s saying they’re exempt from the reciprocal tariffs, but they’re included within the semiconductor tariffs, that are coming in probably a month or two. So these are coming soon,” Lutnick told ABC News’ “This Week” on Sunday.
“All those products are going to return under semiconductors, and so they’re going to have a special focus style of tariff to be sure that that those products get restored.”
Last Wednesday, as Trump’s suite of customized “reciprocal” tariff rates were set to enter effect, the president abruptly reversed course and announced a 90-day pause while his team negotiates recent deals with various countries. Trump remarked that folks were “getting a bit bit yippy, a bit bit afraid” as markets cratered amid tariff fears.
Trump kept the ten% baseline tariff on virtually all imports in effect and announced a 125% tariff against goods and services coming in from China. White House officials clarified that China will still face a 20% tariff announced earlier this 12 months because of fentanyl concerns, which brings the overall rate on most Chinese imports to 145%.
China is America’s third-largest trading partner
“What has been exposed is that we want to make products in the US, and that we are going to not be held hostage by other Countries, especially hostile trading Nations like China, which can do the whole lot inside its power to disrespect the American People,” Trump added.
Straight away, electronics products from China still face other tariffs, reminiscent of the 20% rate Trump imposed earlier this 12 months amid his complaints against China’s role within the fentanyl crisis.
“We want to have semiconductors, we want to have chips, and we want to have flat panels — we want to have this stuff made in America. We are able to’t be reliant on Southeast Asia for the entire things that operate for us,” Lutnick added.
Lutnick explained that the Trump administration is seeking to add tariff incentives to “encourage” the pharmaceutical industry to revive its manufacturing within the US as well.
“We are able to’t be beholden and rely on foreign countries for fundamental things that we want,” Lutnick argued. “So this just isn’t like a everlasting kind of exemption. He’s just clarifying that these aren’t available to be negotiated away by countries. These are things which can be national security that we must be made in America.”
Before Trump paused the customized tariff rates last Wednesday, his top lieutenants had been publicly adamant that the president didn’t intend to incorporate any exemptions and that his protectionist shift was not a negotiating ploy.
Senior counselor for trade and manufacturing Peter Navarro again on Sunday insisted that Trump’s “policy is not any exemptions, no exclusions,” despite the reprieve for electronics.
“The issue, interestingly for chips, because this may be very complex stuff, is that we don’t buy loads of chips, like in bags. We buy them in products. So what Secretary of Commerce Howard Lutnick is doing as we speak is an investigation of the chip supply chain,” Navarro told NBC’s “Meet the Press” on Sunday.
It just isn’t clear what rate the Trump administration is eyeing for its planned semiconductor tariff.
Former President Joe Biden attempted to re-shore semiconductor manufacturing through the 2022 bipartisan CHIPS and Science Act, which featured subsidies to chip firms. Trump has been critical of the CHIPS Act and argued that tariffs are a more practical technique of bringing back semiconductor production to the US.
