US President Donald Trump recently stated that contrary to earlier reports, electronics such as smartphones are not exempt from tariffs and are categorized under a new tariff classification.
According to BBC News, this comes after the administration announced exemptions, sparking confusion. Trump’s statement reframes the policy as a strategic move, with details expected soon.
European markets jumped on Monday after the initial exemption news. Investors saw it as a relief from tariffs as high as 145%. However, Trump’s clarification that these products will face a “semiconductor tariff” has tempered expectations. Markets now await his next announcement.
US President Donald Trump threatens new tariffs on Chinese electronic goods, three days after his gov't announced exemptions on smartphones and other tech from levies he announced since April 2.
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— Al Jazeera English (@AJEnglish) April 14, 2025
Semiconductor Tariffs Explained
As quoted by BBC News, US officials say that exempted electronics will fall under a “semiconductor tariff.” Commerce Secretary Howard Lutnick noted this levy adds to global tariffs paused for 90 days earlier this month. He stressed the goal: “We need our medicines, semiconductors, and electronics built in America.” Trump plans to elaborate on Monday, focusing on national security and the electronics supply chain.
BREAKING: The Trump administration is exempting smartphones, computers and other electronics from his reciprocal tariffs, according to a bulletin posted by U.S. Customs and Border Protection.
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— ABC News (@ABC) April 12, 2025
In Hanoi, Chinese President Xi Jinping urged Vietnam to “jointly oppose unilateral bullying” from the US. Speaking with Vietnam’s leader, To Lam, Xi criticized protectionism, saying it “leads nowhere,” per Xinhua. On his Southeast Asia tour, Xi is positioning China as a stable trade partner amid Trump’s policies. He called for a united front to protect global free trade.
Read: China’s Rare Earth Export Ban: A Strategic Move in the US-China Trade War
Vietnam is negotiating with the US to lower the threatened 46% tariffs, which will hit in July after a global moratorium ends. Its trade ties are t. Customstoms data show $30 billion in imports from China and $31.4 billion in exports to the US in Q1 this year. Hanoi’s leader, To Lam, expressed readiness to deepen cooperation with China for balance.