President Donald Trump announced that he would be setting a tariff rate on imported semiconductors within the next week, with some flexibility for certain companies. This move comes after his exclusion of smartphones and computers from reciprocal tariffs on China, signaling a reset in the semiconductor sector. The president wants to promote domestic production of chips and other electronics to boost the economy.
Despite initial hopes that tech products would remain affordable, Trump’s commerce secretary confirmed that new duties would be imposed on critical technology products from China, including smartphones and computers, in the coming months. These new tariffs would be separate from the reciprocal tariffs on Chinese imports, which have already reached 125%.
Concerns have been raised about the impact of these tariffs, with investors like Bill Ackman calling for a temporary pause on steep tariffs to prevent economic disruption. U.S. Senator Elizabeth Warren criticized the chaotic nature of Trump’s tariff policies, warning of potential economic consequences.
On Sunday, trade adviser Peter Navarro offered China an invitation to negotiate but criticized their connections to the fentanyl supply chain. Trade Representative Jamieson Greer expressed hopes for new trade deals with other countries, while billionaire investor Ray Dalio warned of the risk of a recession if tariffs are not handled properly. The uncertainty surrounding tariff policies has created volatility in the stock market and sparked concerns about the future of the economy.
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