U.S. President Donald Trump confirmed Sunday that recent exclusions of smartphones and computers from his steep reciprocal tariffs on China will be short-lived. In a social media post, Trump said those products are being reassigned to a different “tariff bucket” as the administration launches a national security investigation into semiconductors and the broader electronics supply chain.
Commerce Secretary Howard Lutnick clarified that while these electronics are temporarily excluded, they will be subject to new targeted duties within two months. The new tariffs will focus on semiconductors, pharmaceuticals, and critical technology imports from China, separate from the reciprocal tariffs that hit 125% last week. Tech giants like Apple and Dell, who depend on Chinese imports, had seen Friday’s exclusions as a relief—though now short-lived.
Lutnick emphasized the goal of bringing electronics manufacturing back to the U.S. for national security. Trump’s shifting tariff strategy sparked significant volatility on Wall Street, with the S&P 500 now down over 10% since he took office.
China, in response, raised tariffs on U.S. imports to 125% and is evaluating the impact of Friday’s exclusions. Critics including Senator Elizabeth Warren and market strategist Sven Henrich slammed the administration’s inconsistent messaging. Billionaire Bill Ackman urged Trump to pause tariffs for 90 days to avoid supply chain disruption.
U.S. Customs published a list of exempted electronics, including semiconductors and flat-panel displays. Despite ongoing tensions, U.S. officials expressed hope for trade deals with non-Chinese partners, while hedge fund manager Ray Dalio warned that mishandling the situation could lead to a recession or worse.
The back-and-forth signals heightened uncertainty for global markets and U.S.-China trade relations as the administration moves to reframe tech imports as national security issues.