REUTERS/Kent J. Edwards
U.S. Commerce Secretary Signals Upcoming Tariffs on Smartphones, Semiconductors, and Other Electronics
April 13, 2025 — WASHINGTON — U.S. Commerce Secretary Howard Lutnick announced Sunday that smartphones, computers, and other key electronic products recently exempted from steep tariffs on Chinese imports will soon be subject to new duties, alongside semiconductors and pharmaceutical goods.
Lutnick’s remarks, delivered on ABC’s This Week, indicated a further escalation in President Donald Trump’s tariff agenda, which has already disrupted global trade and rattled financial markets since the introduction of what Trump called “Liberation Day” tariffs on April 2.
Temporary Exemptions Followed by Renewed Tariff Plans
Late Friday, the Trump administration issued a temporary exemption for smartphones and various other electronic imports from China, a move widely welcomed by U.S. technology companies such as Apple and Dell Technologies. However, Lutnick clarified Sunday that this relief would be short-lived.
“They’re exempt from the reciprocal tariffs,” Lutnick said, “but they’re included in the semiconductor tariffs, which are coming in probably a month or two.” He described the forthcoming measures as “special focus-type” tariffs aimed at relocating critical industries to the United States.
“These are things that are national security, that we need to be made in America,” he added, referencing computers, smartphones, and semiconductors.
Policy Volatility Creates Market and Business Uncertainty
The continued ambiguity surrounding U.S. trade policy has fueled market volatility. The S&P 500 index has fallen more than 10% since Trump assumed office on January 20. Analysts and investors have expressed concern over the administration’s shifting messages and the impact of unpredictability on long-term business planning.
Sven Henrich, founder of NorthmanTrader, criticized the policy inconsistencies on social media: “US business can’t plan or invest with the constant back and forth.”
Reactions from Business Leaders and Lawmakers
High-profile investor Bill Ackman, a Trump supporter who has voiced concerns about the tariff regime, urged the administration to pause its broad China tariffs for 90 days, suggesting a temporary 10% rate instead. “He would achieve the same objective… without the disruption and risk,” Ackman said on X.
Meanwhile, Senator Elizabeth Warren criticized the policy direction, describing it as disorganized. “There is no tariff policy — only chaos and corruption,” she said on ABC.
Ray Dalio, founder of hedge fund Bridgewater Associates, warned of deeper economic repercussions if current trade tensions persist. “We are at a decision-making point and very close to a recession,” Dalio told NBC. “And I’m worried about something worse… if this isn’t handled well.”
China Responds and Trade Talks Remain Limited
Beijing increased its own tariffs on U.S. imports to 125% on Friday in retaliation. China’s Ministry of Commerce stated that it was assessing the effects of the U.S. exemptions announced late Friday.
“The bell on a tiger’s neck can only be untied by the person who tied it,” the ministry said, signaling that resolution rests with the U.S.
White House Trade Adviser Peter Navarro, speaking on NBC’s Meet the Press, reiterated criticism of China’s role in the global fentanyl crisis and did not include it in a list of current trade negotiation partners. Talks are ongoing with several nations including the UK, EU, Japan, India, and South Korea.
U.S. Trade Representative Jamieson Greer said on CBS’s Face the Nation that President Trump currently has no plans to speak directly with Chinese President Xi Jinping. However, he expressed optimism about striking agreements with other countries before the end of the current 90-day reprieve on reciprocal tariffs.
Tariff Code Exemptions Published
U.S. Customs and Border Protection published a notice late Friday listing 20 product categories temporarily exempt from the reciprocal tariffs. These include laptops, computers, disc drives, memory chips, and flat panel displays. The exclusions apply solely to Trump’s latest round of tariffs on Chinese imports, now at 125%.
However, the earlier 20% duty imposed on all Chinese imports under the administration’s fentanyl-related policy remains in effect.
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