Trump intends to impose new tariffs on previously exempted technology as his tariff strategy undergoes another change
He emphasises that these items are critical to national security and should be manufactured domestically
On Sunday, U.S. Commerce Secretary Howard Lutnick announced that electronics products, including smartphones and computers that were recently exempted from new tariffs, will soon face additional duties, as reported by Reuters.
During an appearance on ABC’s This Week, Lutnick indicated that the administration intends to implement “a special focus-type of tariff” within the next month or two. This will encompass duties on semiconductors, pharmaceuticals, and certain electronics that are not covered by the existing steep reciprocal tariffs, which have already reached 125%.
“He’s indicating that while these products are exempt from the reciprocal tariffs, they will be subject to the upcoming semiconductor tariffs, likely within a month or two,” Lutnick stated. He stressed the importance of these items for national security, asserting that they should be produced domestically. “These are vital to our national security, and we need to ensure they are made in America.”
On Friday, the Trump administration excluded several tech products from the reciprocal tariffs, offering a temporary lift for companies like Apple and Dell. However, Lutnick’s comments made it clear that the breathing room could be brief. Trump’s shifting approach has rattled markets, causing major volatility and pulling the S&P 500 down by more than 10% since January.
Analysts say the frequent changes make it difficult for businesses and investors to plan ahead. Lutnick’s remarks followed the administration’s statement on Saturday about a coming national security investigation into semiconductors. China, which raised tariffs to 125% in response, said it is reviewing the US exemptions for tech items.
“The bell on a tiger’s neck can only be untied by the person who tied it,” stated China’s Ministry of Commerce. Billionaire investor Bill Ackman urged Trump to suspend tariffs on China for 90 days, mirroring his temporary relief for other nations.
“He would achieve the same objective… without the disruption and risk,” Ackman said on X. Market strategist Sven Henrich criticized the messaging chaos. “Sentiment check: The biggest rally of the year would come on the day Lutnick gets fired,” he said. “US business can’t plan or invest with the constant back and forth.” Democratic Senator Elizabeth Warren also attacked the lack of consistency in policy.
“There is no tariff policy—only chaos and corruption,” she said. The US Customs and Border Protection’s notice listed 20 tech-related product categories exempt from tariffs, including computers, memory chips, and displays.
However, the 20% tariffs related to the fentanyl crisis remain. White House adviser Peter Navarro confirmed outreach to several allies, excluding China. Meanwhile, Trade Representative Jamieson Greer said Trump has no plans to speak with President Xi but hopes to secure non-Chinese trade deals soon.
“My goal is to get meaningful deals before 90 days,” he said. Ray Dalio warned of dire economic consequences. “Right now, we are at a decision-making point and very close to a recession,” he said. “And I’m worried about something worse… if this isn’t handled well.”
