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Donald Trump said that Chinese-made smartphones and electronics will still face tariffs. They are not getting a free pass — they’re just being placed in a different category of tariffs.
European stock markets went up on Monday, reacting to earlier news that some Chinese goods might avoid tariffs of up to 145%.
China asked Trump to “completely cancel” the tariffs and work together based on “mutual respect.” But US officials said that these electronics will now fall under a new “semiconductor tariff.” Trump said more details would come soon.
US Commerce Secretary Howard Lutnick explained that this new tariff is on top of other global tariffs. He said it’s important for America to make its own medicine, semiconductors, and electronics.
A notice from US customs on Saturday had said phones and computers wouldn’t be hit with the 125% tariff. But Trump later denied that, saying the products are just being shifted to another tariff category. He also said the government is reviewing the entire electronics supply chain under national security concerns.
The President did not say if smartphones might still be exempt from the new tariffs.
He said, “You have to show a certain flexibility. Nobody should be so rigid.”
On Friday, the White House said some products would be excluded from Mr. Trump’s “reciprocal” tariffs. This gave the tech industry a bit of hope that it might avoid getting caught in the trade fight.
After finishing a round of golf on Sunday, he posted on Truth Social: “Nobody is getting ‘off the hook.”
He promised an update on Monday about the new semiconductor tariffs. Semiconductors are essential parts of devices like phones and laptops.
Sony responded by raising the price of the PlayStation 5 by about 10% in Europe, Australia, and New Zealand. It blamed inflation and economic challenges but didn’t raise prices in the US.
China called the US tariff changes a “small step” and said it was still considering how to respond. But the US hinting at more tariffs in the future may hurt chances for better relations.
US Trade Representative Jamieson Greer said Trump has no plans to speak with China’s leader, Xi Jinping.
In early April, Trump started with a 54% tariff on Chinese goods, which later increased to 145%. China responded with tariffs of 34%, then 84%, and now 125%.
China said it would “fight to the end” if the US continues to push a trade war.
Trump said more details on exemptions would be announced early this week.
The White House says tariffs are a way to push for better trade deals. Trump believes they help fix unfair trade and bring jobs back to the US. But critics say the tariffs are shaking stock markets and could hurt global trade and jobs.
Sources: BBC, NPR, CNN, Telegraph, Reuters.
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