U.S. President Donald Trump has announced that new tariffs on imported semiconductors will be revealed in the coming week. The announcement comes after a series of policy shifts, with some exceptions for electronics like smartphones and computers, although these may not last long.
The growing uncertainty surrounding the tariffs is set to impact the tech industry and its global supply chains.While many electronics were initially exempted from Trump’s steep 125% reciprocal tariffs on China, the administration clarified that these goods would soon fall under a new category of semiconductor-related tariffs.
New Tariffs Set to Affect Tech Industry
On Sunday, President Trump confirmed that tariffs on semiconductor chips would be announced shortly, with an emphasis on national security concerns. Speaking aboard Air Force One, he noted that while there would be some flexibility for certain companies, the overall goal was to encourage domestic semiconductor production.
The move follows the administration’s previous attempts to reduce reliance on foreign-made technology, particularly from China. In a social media post, Trump elaborated that the tariffs would be part of the upcoming “National Security Tariff Investigations,” aimed at examining the entire electronics supply chain.
Although some products like smartphones and laptops were previously exempted from the reciprocal tariffs, these exclusions are likely to be temporary, according to reports from the White House.
The decision to separate electronics from the broader tariffs reflects an attempt to strike a balance between encouraging domestic manufacturing and preventing consumer electronics prices from skyrocketing.
A New Era for U.S.-China Trade Relations
The announcement is part of a broader re-evaluation of trade relations between the U.S. and China. On Friday, U.S. Customs and Border Protection issued a notice that exempted various tech products from the existing import tariffs.
However, the announcement from Commerce Secretary Howard Lutnick indicates that these exemptions will be short-lived. As Lutnick explained, electronics and semiconductors will soon face a special tariff focus to drive the reshoring of production.
The uncertainty surrounding these tariffs has had immediate consequences on the stock market, with major tech companies like Apple and Nvidia experiencing volatility.
Experts suggest that the tariffs could lead to further disruptions in supply chains, particularly as the industry grapples with reshoring efforts, which may require significant investment and time to implement.
