U.S. President Donald Trump said on Sunday that he would announce the tariff rate on imported semiconductors within the next week.
Speaking aboard Air Force One while returning to Washington from his estate in West Palm Beach, Trump emphasized the need to “uncomplicate” matters for companies by pushing for domestic production of chips, semiconductors, and related technologies. He noted that while flexibility would be shown to certain companies, no exemptions were guaranteed, suggesting that smartphones and computers could soon be included in the tariff measures.
Earlier in the day, Trump launched a national security investigation into the semiconductor and electronics supply chain, a move seen as a precursor to imposing broader sectoral tariffs. He shared on social media that the administration was “taking a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN” as part of the new investigations.
The administration had previously announced exemptions for certain consumer technology products from steep reciprocal tariffs, offering hope to the tech industry that items like phones and laptops might avoid new duties. However, Commerce Secretary Howard Lutnick clarified that critical technology imports, including smartphones and computers, would be subject to fresh tariffs within the next two months.
Lutnick explained that these new tariffs would fall outside of the reciprocal framework under which Chinese imports faced levies of up to 125% last week.
China responded by raising its own tariffs on U.S. goods to 125% on Friday. On Sunday, China’s Ministry of Commerce stated that it was evaluating the U.S. exclusions but cautioned that, “The bell on a tiger’s neck can only be untied by the person who tied it,” signaling a hardening stance.
The evolving trade policies have created turbulence across financial markets. Trump’s shifting messages last week triggered some of the wildest Wall Street swings since the COVID-19 pandemic, with the benchmark S&P 500 index falling more than 10% since Trump assumed office on January 20.
Confusion around the administration’s trade direction was echoed by market participants, who cited concerns over the lack of a consistent tariff policy. Some critics noted that businesses were struggling to make long-term plans due to the daily changes in announcements and strategies.
Meanwhile, U.S. Customs and Border Protection issued an updated notice late Friday listing 20 product categories excluded from the latest round of import taxes. This list included computers, laptops, semiconductor devices, memory chips, and flat panel displays, raising further questions about which sectors would ultimately be affected.
Efforts to open negotiations with China continue in the background, although no direct talks between Trump and Chinese President Xi Jinping are scheduled. White House officials emphasized they are engaged with other trading partners such as the United Kingdom, the European Union, India, Japan, South Korea, Indonesia, and Israel, seeking alternative agreements.
Trade Representative Jamieson Greer expressed optimism that deals could be secured with several countries within 90 days, even as he accused China of escalating the situation through retaliatory tariffs.
Despite the administration’s tough stance, concerns remain over the broader economic impact of escalating trade tensions. Some officials and business leaders have warned that if the situation is not carefully managed, the U.S. risks sliding toward a recession or worse.
