US President Donald Trump stated on Sunday that his administration is looking for a deeper probe into the electronics supply chain on Sunday. He also announced that semiconductors and other critical tech products would be included in upcoming national security tariff investigations, as per a report by Reuters. The initiative could mark the next phase in his administration’s expansion of trade tariffs against China. The fresh tariffs are expected to impact computers, smartphones, and other high-tech imports that had just been exempted from steep duties.
Commerce Secretary Howard Lutnick confirmed on ABC’s This Week that the temporary relief sanctioned to electronic firms like Dell and Apple may be for a short period. ”He’s saying they are exempt from the reciprocal tariffs, but they are included in the semiconductor tariffs, which are coming in likely a month or two,” Lutnick stated, indicating that the White House is planning a new ”special focus” duty structure.
These new tariffs will be separate from the reciprocal ones that have already pushed import levies to 125%. It is expected that the new tariffs will specifically target semiconductors, consumer electronics, and pharmaceuticals. Lutnick highlighted the national security concerns, mentioning, ”These are things that we need to be made in America.”, as quoted by Reuters.
Meanwhile, Trump’s inconsistent tariff approach has attracted criticism from investors and lawmakers. Billionaire investor Bill Ackman has advised Trump to reduce the China tariffs to 10 % temporarily for 90 days to boost companies to diversify supply chains without creating economic shock. NorthmanTrader’s Sven Henrich criticised the administration for its mixed signals. he wrote on X, ”US business can’t plan or invest with the constant back and forth.”
Democratic Senator Elizabeth Warren also condemned the administration’s approach, terming it chaotic: ”There is no tariff policy- only chaos and corruption.”
China, which responded with its own tariff hike last Friday, issued a statement via its Ministry of Commerce. ”The bell on a tiger’s neck can only be united by the person who tied it.”
As talks with partners continue to take place, US Trade Representative Jamieson Greer confirmed there are no immediate plans for Trump to speak with Chinese President Xi Jinping. Hedge fund veteran Ray Dalio cautioned that missteps now could steer the US economy into a decline. He stated, ”We are very close to a recession-and I am worried about something worse.”
(With inputs from Reuters)