In yet another twist to the Trump tariff saga, top US officials have indicated that the relief from import tariffs on electronics such as smartphones and laptops announced a day ago will not last long.
And, Donald Trump has made it clear that China will not escape future trade penalties, dismissing any suggestion of leniency. “We will not be held hostage by other countries, especially hostile trading nations like China,” Trump said on his social media post. No one was “getting off the hook.”
“There was no tariff exception", Trump said in his latest social media post on Sunday. “These products are subject to the existing 20% fentanyl tariffs, and they are just moving to a different Tariff ‘bucket.’”
Trump promised to launch a national security trade investigation into the semiconductor sector and the “whole electronics supply chain”.
A national security review covering semiconductors and the broader electronics supply network would be initiated, reinforcing his administration's combative trade stance. “We won’t be reliant on adversarial nations like China,” he wrote.
Last Friday, the White House announced a temporary 90-day suspension of tariffs on certain electronics imported from China, prompting optimism in financial markets. Technology stocks, including Apple and Nvidia, rallied in anticipation of a short-term reprieve.
However, Trump’s commerce secretary, Howard Lutnick, said on Sunday that further levies are on the horizon. He revealed that the administration is preparing a new set of tariffs targeting key technology imports, including semiconductors, pharmaceuticals and high-end electronics.
Lutnick described these incoming measures as distinct from the current reciprocal tariffs. “They’re not exempt – they’ll fall under a different category of targeted duties,” he told ABC, suggesting the aim is to shift manufacturing back to American soil for national security reasons.
The escalating trade tensions mark the latest chapter in a protracted economic standoff between Washington and Beijing. Since Trump initiated his aggressive tariff campaign, both countries have exchanged rounds of retaliatory duties, with US tariffs reaching as high as 145% and China imposing countermeasures of up to 125%.
Though many trade partners were granted temporary exemptions, China was notably left out. This exclusion, along with abrupt policy U-turns, has contributed to instability in the US economy. Bond markets have slumped, the dollar has weakened, and consumer sentiment has taken a hit.
Democratic senator Elizabeth Warren condemned the evolving tariff framework, accusing Trump of lacking a coherent economic plan. “It’s not a strategy – it’s dysfunction,” she said in a televised interview prior to Trump’s latest remarks.
Meanwhile, China’s ministry of commerce played down the recent exemptions, labelling them a minor gesture. Officials reiterated calls for a full withdrawal of the US tariff regime.
As the trade conflict deepens, Beijing has turned to regional diplomacy. President Xi Jinping is set to begin a diplomatic tour of south-east Asia with a visit to Vietnam on Monday, aiming to reinforce regional alliances amid continued economic friction with Washington.
