Trump’s Commerce Secretary Warns: Temporary Electronics Tariff Exemptions Before Chip Tariffs Arrive

In a surprising twist over tariff policies, U.S. Commerce Secretary Howard Lutnick announced that exemptions for electronics such as smartphones and laptops will be temporary. This decision aligns with the Trump administration’s intent to establish a new tariff framework focusing on the semiconductor sector.

During an appearance on ABC’s “This Week,” Lutnick clarified that while certain electronic items might currently avoid reciprocal tariffs, they will soon be subject to semiconductor tariffs, expected to roll out in the coming weeks.

Later, President Trump stirred further confusion by asserting on social media that there were no exemptions, stating these goods would simply transition into a different tariff classification, facing a 20% levy instead. This stance forms part of the administration’s broader strategy to penalize China, particularly regarding its role in fentanyl trafficking.

The recent announcements could have a significant impact on major technology firms such as Apple and Samsung, along with chip manufacturers like Nvidia. Concerns linger about how these impending tariffs might dampen anticipated tech stock gains on the market.

Items like smartphones and laptops are currently exempt from various tariffs imposed on Chinese goods. Furthermore, equipment used to manufacture semiconductors will also remain tariff-free, distinguishing it from other wares that fall under broader tariffs affecting imports from numerous countries.

This pivot in tariff strategy is the latest from an administration that has frequently altered its course on trade policies. Lutnick emphasized that more changes are imminent, specifically regarding computer chip industry tariffs.

On Air Force One, President Trump signaled he would disclose more details about such exemptions soon. He also mentioned that his administration is closely examining the entire electronics supply chain in light of upcoming National Security Tariff Investigations.

Some analysts interpret the recent shifts as a recognition that the tariffs on China may not succeed in reshaping manufacturing patterns for complex electronic products in the U.S. Indeed, significant hurdles remain for companies like Apple, which has cultivated decades-long supply chains in China.

Experts highlight the formidable challenges associated with relocating production. Establishing new facilities domestically would require large investments and considerable time, ultimately inflating device prices and jeopardizing market competitiveness.

The shifting tariff landscape has caused volatility for the so-called “Magnificent Seven” tech giants, which include Apple, Microsoft, Nvidia, Amazon, Tesla, Alphabet (Google parent), and Meta (Facebook parent). Their collective market capitalization suffered a steep decline, losing $2.1 trillion by early April. Although recent developments have moderated the decline, uncertainties remain.

Industry leaders had anticipated a more favorable engagement with the Trump administration, viewing his presidency as an opportunity for more constructive policies compared to those expected under President Biden. For instance, Apple recently pledged a substantial investment in domestic operations, reminiscent of earlier commitments made during Trump’s presidency when their products were exempted from tariffs.

Analyst Dan Ives noted that the situation has alleviated immediate pressures facing the tech sector but introduced confusion and uncertainty, complicating planning processes for many companies. Major players in the industry, like Apple and Samsung, did not respond to commentary requests over the weekend, leaving analysts to ponder the implications of these ongoing developments.

Contributions to this report were also made by AP White House correspondent Darlene Superville and AP Technology Writer Matt O’Brien from various locations.