Equal exemptions questioned, exacerbating US tariff chaos
According to Refinitiv, US President Trump and his senior trade officials intensified confusion about the US government's tariff plans on Sunday, including newly announced reciprocal tariff exemptions for electronic products such as smartphones, computers, and semiconductors.
Trump and his aides have stated that exemptions (canceling the 145% additional tariffs imposed on many Chinese electronic devices and components) will be partially or completely lifted in the coming weeks. The 20% tariff levied separately on all Chinese goods is still valid.
These exemptions were initially disclosed in the technical guidance released last Friday evening, and were not announced by the US Customs and Border Protection with great fanfare. They were confirmed by the White House last Saturday.
But Trump expressed doubts about the duration of the exemption on Sunday afternoon, which is seen as a blessing for tech companies including Apple. Apple produces iPhones and most other products in China.
Trump wrote on social media, "No one can 'get rid of' the unfair trade balances and non monetary tariff barriers used by other countries to deal with us
Trump said, "No tariff 'exceptions' were announced on Friday. These products are affected by the existing 20% fentanyl tariff, and they are simply being transferred to different tariff' buckets'. Fake news knows about this, but refuses to report. In the upcoming national security tariff investigation, we are focusing on the semiconductor and entire electronics supply chain
Earlier on Sunday, US Commerce Secretary Lutnik stated that these exemptions are temporary and that separate tariffs on electronic products will be imposed "soon.
Lutnik said, "They are exempt from equivalent tariffs, but they are included in the semiconductor tariffs that may be introduced in one or two months, so this is not a permanent exemption. Trump is just clarifying that these are not something that countries can negotiate
Lutnik added, "These things are related to national security, and we need to manufacture them in the United States
Lutnik's remarks and Trump's posts on social media have poured cold water on people's hopes that popular technology products made in China, such as computers, laptops, smartphones, and tablet TVs, can be exempt from Trump's 145% equivalent tariffs. Tariffs have raised prices for American importers and are typically passed on to consumers.
They also increase the uncertainty of Trump's tariff policies, which have repeatedly changed since he took office. Democratic lawmakers said on Sunday that these changes are causing "chaos" and a credibility crisis for Trump.
On Sunday, US Trade Representative Greer attempted to clarify the reasons for the exemptions, stating that although the executive order on exemptions signed by Trump is partially titled "Clarifying Exceptions," they are "not true exceptions.
Greer said, "The actual situation is that this supply chain has shifted from a global tariff and equivalent tariff system to a national security tariff system
The exemption of equivalent tariffs initially brought relief to large technology companies, including Apple and chip manufacturers like Nvidia.
But New Jersey Democratic Senator Booker said that the Trump administration's decision to revoke reciprocal tariffs on some electronic products from Asian powers last Friday evening, as well as the chaos caused by his sudden call to suspend new tariffs on other countries for 90 days last Wednesday, are harmful to the United States.
He said, "President Trump is facing a credibility crisis now, and we have received voices from all over the world. People don't know if they can trust him
Massachusetts Democratic Senator Warren warns that trade turbulence will deter businesses from investing in the United States. What we see now is chaos. When Trump turns red and green on tariffs, investors will not invest in the United States
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