Trump official says tariff exemptions on tech are temporary. Elizabeth Warren calls trade war ‘red light, green light’ game

Key Points

  • The Trump administration has temporarily exempted electronic devices from tariffs, but they will face separate semiconductor tariffs in the coming months.
  • China has retaliated with 125% tariffs on US imports in response to the US increasing tariffs on Chinese goods to 145%.
  • Analysts see the tariff exemptions on electronics as beneficial for tech investors, providing relief to companies like Apple and Microsoft.
  • Trump officials maintain that tariffs will strengthen the US economy, despite market turmoil and fears of a recession.
  • There is ongoing confusion and criticism regarding the implementation and effects of these tariffs, with experts like Larry Summers calling it a significant economic policy misstep.

Summary

The Trump administration's recent decision to temporarily exempt electronic devices from tariffs has introduced further complexity into the ongoing trade war with China. Commerce Secretary Howard Lutnick clarified that while electronics are currently exempt, they will soon face semiconductor tariffs, which are expected to be implemented in the next few months. This move comes amidst a backdrop of escalating tariffs, with the US imposing a 145% tariff on Chinese goods, prompting China to retaliate with a 125% tariff on US imports. The exemptions have been welcomed by tech investors, providing a temporary sigh of relief for companies like Apple and Microsoft. However, the broader economic implications are causing concern, with market instability, plummeting consumer sentiment, and fears of an impending recession. Critics, including Senator Elizabeth Warren and former Treasury Secretary Larry Summers, have lambasted the policy for its unpredictability and potential to harm the US economy. Despite these criticisms, Trump officials continue to defend the tariffs, arguing they will bolster US manufacturing and protect jobs, while also hinting at further studies on the national security implications of semiconductor imports.

yahoo
April 13, 2025
Stocks
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