Michaela
Commerce Secretary Howard Lutnick has reversed course on a newly announced reciprocal tariff exemption for select electronics, just days after U.S. Customs and Border Protection issued a bulletin detailing the measure. The abrupt policy shift has deepened market uncertainty, raising fresh concerns about the stability of U.S. trade strategy.
According to ABC News, Lutnick explained that the reciprocal tariff exemption would be temporary, lasting until the administration establishes a sector-specific tariff framework for semiconductor products. The new policy, covering items like smartphones, graphics processors, and computing chips, is expected within the next “month or two.”
In an interview with “This Week” co-anchor Jonathan Karl, Lutnick clarified that products such as smartphones and graphics processors will fall under the semiconductor category. He added that a targeted tariff system will be implemented to encourage the reshoring of these products.
“We need to have semiconductors, we need to have chips, and we need to have flat panels — we need to have these things made in America. We can’t be reliant on Southeast Asia for all of the things that operate for us,” Lutnick said.
On Friday evening, the U.S. Customs and Border Protection released a bulletin detailing that key electronics, including smartphones, computers, solar cells, flat-panel TV displays, and semiconductor-based storage devices, would be exempt from the tariffs President Donald Trump imposed on April 2. As a result, these products would avoid the steep tariffs on Chinese imports and the global 10% tariff rate set by the Trump administration.
During the interview, Lutnick stated that the White House plans to introduce a tariff model aimed at incentivizing the semiconductor and pharmaceutical industries to relocate their operations to the U.S.
“We can’t be beholden and rely upon foreign countries for fundamental things that we need. So this is not like a permanent sort of exemption. [President Trump is] just clarifying that these are not available to be negotiated away by countries. These are things that are national security that we need to be made in America,” Lutninck further stated.
The new tariffs came as part of a broader strategy to encourage domestic manufacturing and reduce reliance on foreign supply chains. China responded with its own set of tariffs on U.S. goods, intensifying an already tense trade dynamic.
The rapid back-and-forth has caused confusion among global markets, especially in the tech industry, where companies rely heavily on Chinese components and assembly.
The uncertainty surrounding these tariff policies has led to significant market volatility. For instance, Bitcoin’s price experienced a sharp decline, dropping 4.1% to $76,550, while Ethereum fell 8.3% to its lowest level since March 2023. This downturn was attributed to investor concerns over the potential for a prolonged trade war and its impact on the global economy.
As the situation develops, the cryptocurrency market remains sensitive to further policy changes and geopolitical developments.
Read More
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- China Hits Back: Retaliatory Tariffs and Export Controls Target Key U.S. Industries
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
