Donald Trump on Sunday showed that smartphones and other appliances imported into the US would face tariffs and wanted big tech companies like Apple, Nvidia and Microsoft to ask for their hopes.
“No one has “off the hook” due to unfair trade balances and the financial tariff barriers that other countries use against us. Trump wrote on social media.
His administration this weekend ruled out mobile phones, chip-making equipment and certain computers from sudden “mutual” tariffs that have served as a major boost to high-tech groups whose stocks plunged after the president unleashed the World Trade War on “Freeing Day.”
However, on Sunday morning, US officials dropped the exemption and warned that such products would be reconsidered as part of the government’s investigation, which faces another tariff.
“What he’s doing is saying he’s exempt from mutual tariffs,” U.S. Secretary of Commerce Howard Lutnick said, referring to Trump. “But they are included in semiconductor tariffs that will likely come in one or two months.”
When asked to clarify whether the tariffs on the iPhone would “return in about a month,” Lutnick replied.
Later Sunday, Trump wrote on social media that the US is “looking at the entire semiconductor and electronics supply chain in future national security tariff investigations.”
Comments from Lutnick and Trump will create further uncertainty on Wall Street about the impact of the president’s tariff rollout on Monday. This is characterized by a series of reversals that caused a stock roller coaster and a sale last week in the US Treasury market, which was a $2.9 billion stock market.
Raydario, the founder of the billionaire at hedge funding firm Bridgewater Associates, warned on Sunday that Trump’s tariffs were “very disruptive.”
“We’re at the point of decision making right now and I think we’re very close to a recession,” Dario told NBC on Sunday. “And if this isn’t handled well, I’m worried that it’s worse than a recession.”
Apple, Nvidia, and other US tech companies exposed to potential tariffs did not immediately respond to requests for comment. The Consumer Technology Association, representing many of the largest electronics brands, declined to comment.
Analyst estimates that softening tariffs on Chinese imports is a big win for people like Microsoft and Apple, earning around 80% of the Chinese iPhone.
Beijing on Sunday urged the White House to cancel the full range of “mutual” tariffs, claiming “there are no winners in the trade war and there is no way for protectionism.”
China’s Commerce Department said it was “a small step towards the US revising illegal, unilateral mutual tariffs,” but “assessing relevant impacts.”
Trump’s administration claims that Apple can build iPhones in the US as part of its push to revive American manufacturing, the expert says it’s unrealistic to consider the company’s deep supply chain relationships to China and Southeast Asia.
For the time being, Apple instead pivoted to India’s second iPhone manufacturing base. There, it appears to be facing lower tariffs than China.
Over the past week, Trump has raised the extra tariffs in China to 145% despite offering a 90-day suspension on “mutual” taxation in other countries.
Beijing’s collection includes a 125% “mutual” tariff and separate 20% obligations on all imports for retaliation against China’s fentanyl production.
The exemption provided on Friday applies to the “mutual” portion of China’s tariffs and the 10% “mutual” collection imposed on most US trading partners.
Trump’s top trade negotiator Jamieson Greer said on Sunday that he wants to get “meaningful deals” with his trading partners before the 90-day suspension expires. “I think we’ll be with some countries in the coming weeks,” he said.
Since entering the White House in January, Trump has threatened multiple US trading partners with catastrophic tariffs that have been ultimately reduced, stopped or eliminated.
“The massive disruption created by this constant stream of news from the White House is dizzy for the industry and investors, creating great uncertainty and disruption for businesses looking to plan their supply chains, inventory and demand.”
Trump unleashed tariffs in the rapidly growing sector on imported cars and auto parts into the US, as well as imports of all American steel and aluminum. US officials have indicated that additional duties will apply to chips, drugs, copper and materials.
The United States is also imposes a 25% tariff on goods imported from Canada and Mexico that do not comply with the terms of Trump’s 2020 USMCA free trade transaction.
Hedge fund manager Bill Ackman warned about the “nuclear winter” a week ago.
“By leaving China with a 145% tariff over the past few days, he sent a message to China about the outcome of the retaliation rather than coming to the negotiation table,” he wrote to X.
“If China does not work together and negotiate a deal that makes sense to our country, President Trump can defeat the hammer in 90 days.”
