The Trump administration is planning to introduce specific tariffs on semiconductors and other electronic products, just days after providing an exemption from existing levies.
Big tech firms such as Apple and Nvidia have experienced whiplash in recent days, initially buoyed by a decision to exempt electronic goods from the 125 per cent tariff on imports from China.
But this was short-lived, with US President Donald Trump on Monday night saying that tech products won’t be “getting off the hook” and will instead have a specific tariff slapped on them within weeks.
The escalating trade war between China and the US has led to concerns over price increases for a range of electronic products manufactured in China, such as laptops and smartphones.
Tech giants such as Apple rely heavily on China-made components for their devices and reportedly chartered five planes filled with products from India to the US in late March in anticipation of the tariffs.
An exemption…
Over the weekend the US Customs and Border Protection confirmed an exemption for smartphones, computers and other electronic goods from the so-called reciprocal tariffs announced recently by Trump, mainly the large levy imposed on imports from China.
This exemption also included hard drives, computer processors and memory chips – a range of components for popular consumer tech goods that are not manufactured in the US.
These electronic goods account for about $624 billion in US imports based on 2024 figures, with about $160 billion of this coming from China.
The Trump administration argued this was a “clarification” rather than a backflip.
…But a new tariff
Shortly after, Trump took to Truth Social to say that his administration will instead place a specific tariff on semiconductors, and other electronic goods, on national security grounds.
“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,” Trump posted.
“We are taking a look at Semiconductor and the WHOLE ELECTRONIC SUPPLY CHAIN in the upcoming National Security Tariff Investigations.”
US Commerce Secretary Howard Lutnick confirmed this and said that other electronic goods would be included in the semiconductor tariff.
“They’re exempt from the reciprocal tariffs but they’re included in the semiconductor tariffs, which are coming in probably a month or two,” Lutnick said.
“All these products are going to come under semiconductors, and they’re going to have a special focus type of tariff to make sure that those products get reshored.
“We need to have semiconductors, we need to have chips, and we need to have flat panels – we need to have these things made in America.
“We can’t be reliant on south-east Asia for all the things that operate for us.”
Trump told the press on Tuesday morning that this semiconductor tariff will be in force “in the not too distant future”.
Turbulence
It continues a turbulent few weeks for the tech sector, with stocks in large tech firms surging following the announcement of a 90-day pause on all reciprocal tariffs except for those imposed on China.
The tech-heavy Nasdaq jumped by more than 12 per cent last week, its largest daily gain since the dot-com bubble in early 2021, after suffering major losses in the wake of “Liberation Day”.
A potential increase in the cost of smartphones, laptops and other tech goods has been a major focus for US consumers, with reports there has been an influx of customers at Apple stores around America.
The Trump administration is pushing for the likes of Apple to manufacture its products locally, but the tech giant has been reluctant to do so due to high costs.
Apple has diversified its production into other countries outside of China, such as India and Vietnam, and has announced a $790 billion ($US500 billion) investment to expand facilities in the US.
