US President Donald Trump has denied reports that his administration had granted a tariff exception for electronics like smartphones and chips, contrary to suggestions late last week that consumer tech products would be spared from sweeping reciprocal tariffs.
"NOBODY is getting 'off the hook' for the unfair Trade Balances, and Non-Monetary Tariff Barriers, that other Countries have used against us, especially not China, which, by far, treats us the worst!" Trump said on Sunday on his Truth Social account.
"There was no Tariff 'exception' announced on Friday. These products are subject to the existing 20% fentanyl tariffs — they are just moving to a different Tariff 'bucket,'" he added.
"The Fake News knows this, but refuses to report it. We are taking a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN in the upcoming National Security Tariff Investigations. What has been exposed is that we need to make products in the United States, and that we will not be held hostage by other Countries, especially hostile trading Nations like China, which will do everything within its power to disrespect the American People."
"The Golden Age of America, which includes the upcoming Tax and Regulation Cuts, a substantial amount of which was just approved by the House and Senate, will mean more and better paying Jobs, making products in our Nation, and treating other Countries, in particular China, the same way they have treated us," he added.
US Customs and Border Protection published a notice on Friday appearing to exempt electronic products from 145 percent tariffs on Chinese goods, raising hopes that such items had been spared.
But Commerce Secretary Howard Lutnick attempted to clarify things on Sunday, saying electronics were not permanently exempt but would instead be subject to new semiconductor-specific tariffs expected in the next month or two as part of a broader strategy.
The decision acknowledges the heavy reliance on Asian supply chains and aims to avoid price hikes while still encouraging domestic manufacturing.
China looks elsewhere
China has sought to present itself as a stable alternative to an erratic Washington, courting countries spooked by the global economic storm.
Xi Jinping on Monday kicks off a five-day Southeast Asia tour for talks with the leaders of Vietnam, a manufacturing powerhouse, as well as Malaysia and Cambodia.
The fallout from Trump's tariffs — and subsequent whiplash policy reversals — has sent particular shockwaves through the US economy, with investors dumping government bonds, the dollar tumbling, and consumer confidence plunging.
Adding to the pressure on Trump, Wall Street billionaires — including a number of his own supporters — have openly criticised the tariff strategy as damaging and counterproductive.
The White House insists the aggressive policy is bearing fruit, saying dozens of countries have already opened trade negotiations to secure a deal before the 90-day pause ends.
"We're working around the clock, day and night, sharing paper, receiving offers and giving feedback to these countries," Greer told CBS.
