Mon, 14 Apr 2025

Mon, 14 Apr 2025 Trump threatens new tariffs on smartphones days after exempting them

President Trump says Chinese-made electronics are simply moving to a different levy "bucket".
China has reacted angrily to US President Donald Trump's decision to impose tariffs on Chinese-made electronics, despite earlier reports that some products would be exempt from the levies. Trump tweeted that smartphones and other electronics are not excluded from the tariffs, but rather "moving to a different Tariff 'bucket'". The move is likely to have significant implications for global trade and could lead to higher prices for consumers. US Commerce Secretary Howard Lutnick said the new semiconductor tariff would be in addition to existing global tariffs, with Trump expected to reveal more details later. Lutnick argued that the US needs to prioritize domestic production of critical goods like medicines and semiconductors. China has called on Trump to "completely cancel" his tariffs regime and return to a path of mutual respect. Beijing has also accused the US of attempting to provoke a trade war. The move has already had an impact on global markets, with European stock markets rising after Friday's announcement that some products would be exempt from the levies. However, Trump's latest decision is likely to have a negative impact on consumer electronics prices and could lead to higher costs for companies like Sony, which announced a 10% price hike for its PlayStation 5 console in Europe due to "challenging economic environment" and inflation. The tariff dispute has also raised concerns about the global trade system and the potential for a decrease in international trade, which could have significant implications for jobs and individual economies.
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