President Trump announced that he will be announcing the tariff rate on imported semiconductors within the next week. This comes after he excluded smartphones and computers from reciprocal tariffs on China, but this exemption is likely to be short-lived as he aims to reset trade in the semiconductor sector. Trump emphasized the importance of making chips and semiconductors in the United States.
The White House announced a national security trade probe into the semiconductor sector, indicating that critical technology products from China will face new duties along with semiconductors within the next two months. Trump’s commerce secretary, Howard Lutnick, clarified that smartphones, computers, and electronics products will face special tariffs in addition to sectoral tariffs targeting semiconductors and pharmaceuticals.
The back-and-forth on tariffs has created uncertainty and volatility on Wall Street, with Trump’s decisions causing significant market swings. Billionaire investors and lawmakers have criticized Trump’s tariff policies, warning of potential negative impacts on economic growth and inflation.
Despite the ongoing trade tensions, the U.S. has extended an invitation to China to negotiate, although there are no immediate plans for Trump to speak with Chinese President Xi Jinping about tariffs. The administration is hopeful for meaningful deals with other countries in the coming weeks to address the trade frictions caused by China’s response to U.S. tariffs. Rich Dalio, the founder of the world’s largest hedge fund, expressed concerns about the U.S. economy sliding into a recession or worse due to the tariffs.
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