Trump threatens new tariffs on smartphones days after exempting them

In a recent development, President Donald Trump has announced that smartphones and other electronics manufactured in China will not be exempt from tariffs, which are additional taxes imposed on imported goods. This statement comes just days after it was reported that certain products would be free from these tariffs, which can be as high as 145%. Following the announcement, European stock markets experienced a rise on Monday morning, reflecting a positive reaction to the news that some electronics would avoid these hefty tariffs. In response to the ongoing trade tensions, China has urged Trump to completely eliminate the tariffs and to engage in a more respectful dialogue. However, US officials clarified that instead of being exempt, these products will now fall under a new tax known as a 'semiconductor tariff. ' Trump is expected to provide further details on this matter in the near future. US Commerce Secretary Howard Lutnick emphasized the necessity of having essential items like medicines and electronics produced within the United States. On Saturday, a notice from US customs indicated that smartphones, computers, and various electronic devices would be excluded from the 125% tariff on goods entering the country from China. However, Trump quickly took to social media to refute this information, asserting that there is no exemption for these products and labeling the reports as false. He explained that these items are simply being transferred to a different 'bucket' of tariffs. Furthermore, Trump mentioned that they are examining semiconductors and the entire electronics supply chain as part of the upcoming National Security Tariff Investigations. Semiconductors are crucial components that power everyday devices like smartphones and laptops. On Monday, stock markets in Europe, Australia, and New Zealand saw a decline of about 10%, attributed to a challenging economic environment, rising inflation, and fluctuating exchange rates. However, no price increases were announced in the United States. The Chinese commerce ministry characterized Trump's exemptions as a 'small step' and stated that they are evaluating the implications of this decision. Nevertheless, the indications from Trump’s administration regarding potential future tariffs may dampen hopes for a resolution in the ongoing trade conflict. US Trade Representative Jamieson Greer was asked whether there were any plans for Trump to engage in discussions with Chinese President Xi Jinping, to which he responded that there are currently no plans for such a meeting. Earlier this month, Trump had imposed a 54% tariff on imports from China, which later escalated to the current 145% rate. In retaliation, China implemented its own tariffs on US goods, starting at 34% and increasing to 125%. The Chinese commerce ministry declared that they would 'fight to the end' if the US continues to provoke a trade war. On Saturday, while traveling to Miami, Trump stated that he would provide more information about the exemptions at the beginning of the following week. The White House has maintained that tariffs are being used as a negotiating tool to secure more favorable trade agreements with other nations. Trump has expressed that his approach aims to rectify perceived unfairness in the global trading system and to bring jobs and manufacturing back to the United States. However, his interventions have led to significant fluctuations in the stock market and raised concerns about a potential decline in global trade, which could have adverse effects on employment and individual economies.