Tech tariff reprieve may be short-lived, Commerce Secretary warns
Key takeaway:
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Smartphone and electronics tariff exemptions seen as temporary, not negotiable
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Semiconductor levies expected in a month or two, as part of Trumps reshoring push
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Lawmakers criticize administrations 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 ABCs "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 Trumps long-term plan to bring critical manufacturing back to U.S. soil.
These are coming soon, Lutnick said. Theyre 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.
Its not a permanent sort of exemption, he said. Hes 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 cant 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: Its all chaos and corruption
Senator Elizabeth Warren (D-Mass.) blasted Trumps 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. Its just all chaos and corruption.
She also pointed to the short-lived nature of Trumps bold claims, citing his tweet of I WILL NOT BACK DOWN shortly before reversing course on several key tariffs.
Whats 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.
Posted: 2025-04-14 02:33:24
