Trump threatens new tariffs on smartphones and electronics, signaling further escalation in the U.S.-China trade war, despite recent exemptions for certain products.
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| Donald Trump revises tariff policy, shifting Chinese smartphones and electronics into a new "semiconductor tariff bucket," escalating the trade dispute with China. Image: CH |
Washington, D.C., USA, April 14, 2025:
In a sudden shift, Donald Trump has announced that smartphones and electronics from China will face new tariffs, despite earlier indications of exemptions. The U.S. president clarified on social media that reports of these products being excluded were inaccurate, and that they would instead fall under a new category dubbed the "semiconductor tariff bucket". This move further intensifies the ongoing trade conflict between the U.S. and China, particularly impacting products that rely heavily on semiconductors.
While European stock markets saw a brief rebound on Monday following reports that certain electronics would be spared from tariffs, Trump's statement directly contradicted this, leaving global trade markets uncertain. These new levies are expected to hit widely-used consumer technology, including smartphones and laptops, which depend on key components like semiconductors.
In a recent interview, U.S. Commerce Secretary Howard Lutnick confirmed that the new semiconductor tariff would be an additional burden, stacked on top of the range of global tariffs imposed earlier this month, although these were paused for 90 days. Trump’s administration continues to advocate for bringing crucial industries like medicines, electronics, and semiconductors back to U.S. soil, claiming this will secure domestic manufacturing jobs.
On the global tech front, Sony announced a 10% price hike for its flagship PlayStation 5 in Europe, Australia, and New Zealand, citing rising costs driven by the global economic climate and tariff uncertainty. However, U.S. consumers will not face price increases at this time.
In response, China's Ministry of Commerce described the recent exemptions as a "small step" and indicated that Beijing is still weighing the impact of these actions. Nevertheless, Trump's administration is set on enforcing further tariffs, with U.S. Trade Representative Jamieson Greer revealing no immediate plans for direct talks with Chinese President Xi Jinping.
The escalating tariffs, which began at 54% in April 2025 and have now risen to 145%, have led to growing tension. In retaliation, China has imposed its own tariffs on U.S. goods, now set at 125%. China's commerce ministry warned last week that it would "fight to the end" if the U.S. pursued further tariff actions.
The White House maintains that tariffs are a tool for negotiating better trade agreements and protecting U.S. industries. However, the approach has led to significant volatility in global markets and raised concerns over long-term economic consequences, including potential disruptions in international trade, the global supply chain, and job markets worldwide.