The topsy-turviness of the US – China trade war saga continues, as US President Donald Trump has recently revealed that the tariff exemptions on phones, computers and other consumer electronics are only temporary. In a social media post on Sunday, he stressed that “nobody is getting off the hook” and clarified that the affected products are simply being moved to another tariff category. Trump added that his administration would soon examine the entire electronics supply chain.
The temporary pause, detailed in a US Customs and Border Protection document, provides a short-term reprieve for companies like Apple and offers time for businesses and lobbyists to seek adjustments before the new levies are finalised. Chinese officials welcomed the exemptions but urged the US to fully abolish the tariffs through dialogue.
Commerce Secretary Howard Lutnick and other officials indicated that the new semiconductor-focused tariffs could be introduced within one to two months, with a notice expected soon. These tariffs are likely to be lower than the 125% rate but higher than the 10% global rate.
Bloomberg reports the exemptions cover nearly US$390 billion in imports, including over US$101 billion from China, based on 2024 trade statistics. The White House had previously stated that sectors receiving specific levies, such as steel, aluminium and autos, would not be subject to the broad country tariffs.
While the final rate for the new semiconductor tariffs remains uncertain, similar tariffs on other sectors have been set at around 25%. These are expected to be more permanent than the country-based rates. Other tariffs, such as the 20% duty aimed at pressuring China, remain unaffected.
(Source: Bloomberg)
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