Howard Lutnick, the Commerce Secretary, mentioned that the recent decision by the Trump administration to temporarily exempt electronic devices such as smartphones, iPhones, and laptops from tariffs is only a short-term relief. However, these products will eventually be subjected to separate levies, further complicating the already chaotic implementation of tariffs on Chinese goods. Lutnick explained in an interview with ABC News’ “This Week” that while electronics are currently exempt from reciprocal tariffs, they will be included in semiconductor tariffs expected to be imposed in the near future, likely within a month or two. He also stated that tariffs targeting specific industries deemed critical to national security will be enforced in the coming months and will not be up for negotiation.
President Trump later clarified the situation regarding US tariffs on high-tech products from China, emphasizing that no exceptions were made and that the products would be subject to existing tariffs. Despite the confusion surrounding shifting tariff rates and exemptions for certain products, Democratic Senator Elizabeth Warren criticized the situation as chaotic and corrupt.
Analysts at Wedbush Securities viewed the exemption of electronics from tariffs as positive news for tech investors, particularly benefiting companies like Apple, Nvidia, and Microsoft. The Trump administration continues to defend its tariff policies, asserting that they will bolster the US economy by supporting domestic manufacturing and preserving jobs.
The administration remains firm on its stance that tariffs are necessary to enhance the economy, despite concerns about their impact on the stock market and consumer sentiment. Discussions have also been mentioned regarding a study on the national security implications of semiconductor imports, which could lead to additional electronic-specific tariffs in the future. White House officials, including Peter Navarro, Jamieson Greer, and Kevin Hassett, have defended Trump’s tariff strategies in various news interviews, with Navarro mentioning the possibility of renewed talks with China.
The current tariff rates stand at 145% on imports from China, with China retaliating by imposing 125% tariffs on US imports. Chinese President Xi Jinping has stated that his country is not afraid of further escalation, though officials have indicated they do not intend to raise tariffs above 125% in response to US actions.
Appearing on “State of the Union,” Hassett mentioned that 130 countries are currently engaged in negotiations regarding tariffs with the United States, following President Trump’s 90-day pause on reciprocal tariffs, with the exception of those imposed on China. Hassett noted that the process concerning China is still in its early stages, if it exists at all, while emphasizing that the process for other countries is well-organized and transparent.
When asked on CBS News’ “Face the Nation with Margaret Brennan” whether the U.S. intends for China to divest its U.S. assets, particularly those tied to U.S. treasuries, Greer clarified that such a move is not part of the current plan. He stated that the current situation arose due to China’s decision to retaliate.
Economist Oren Cass, founder of the think tank American Compass, expressed support for the 10% across-the-board tariff and higher tariffs on China but criticized the uncertainty surrounding the implementation of the tariffs. U.S. Senator Elizabeth Warren raised concerns about the confusion and unpredictability surrounding the tariffs, emphasizing the need for clarity and consistency in trade policy.
Former Treasury Secretary Larry Summers condemned the tariff policy as a detrimental economic decision, labeling it as the most significant self-inflicted wound in economic policy since World War II. Summers urged a reconsideration of the tariffs, highlighting their adverse impact on competitiveness, unemployment, and inflation.
Billionaire investor Ray Dalio, speaking on “Meet the Press,” characterized Trump’s trade policies as disruptive but suggested that they might be part of a broader process. He emphasized the importance of assessing the situation at the end of the 90-day period and noted the potential risks associated with escalating tensions.
Regarding the possibility of a recession, Dalio expressed concerns about the U.S. economy’s proximity to a downturn. Financial institutions like JPMorgan and Goldman Sachs have also revised their predictions, indicating increased odds of a recession. Dalio cautioned that the combination of tariffs, debt, and geopolitical shifts could have severe repercussions if not managed effectively.
This report contains contributions from CNN’s Kevin Liptak and Elisabeth Buchwald. For further news and updates from CNN, visit CNN.com and subscribe to their newsletters.
