President Trump announced that he will be revealing the tariff rate on imported semiconductors within the week, with some flexibility for certain companies in the sector. The exclusion of smartphones and computers from reciprocal tariffs on China is likely to be short-lived as Trump aims to promote domestic production of chips and semiconductors. He also initiated a national security trade probe into the semiconductor sector.
The administration’s back-and-forth on tariffs last week caused significant fluctuations on Wall Street, with the S&P 500 index declining more than 10% since Trump took office. Commerce Secretary Howard Lutnick confirmed that critical technology products from China would face new duties, including smartphones and computers, within the next two months alongside tariffs targeting semiconductors and pharmaceuticals.
Beijing responded by increasing tariffs on U.S. imports to 125%, while China’s Ministry of Commerce stated that they were evaluating the impact of the exclusions for technology products. Billionaire investor Bill Ackman called for a pause on Chinese tariffs for 90 days to avoid disruptions and risks.
Senator Elizabeth Warren criticized the lack of a clear tariff policy, labeling it as chaos and corruption. White House trade adviser Peter Navarro invited China to negotiate, while Trade Representative Jamieson Greer expressed hopes for deals with non-Chinese countries. Billionaire investor Ray Dalio expressed concerns about the potential for the U.S. to slide into a recession due to the tariffs.
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