Trump says no exemption for iPhones and other Chinese-made electronics — suggests new tariff coming

President Trump settled the statement implicit the tariffs connected iPhones and different Chinese-made devices — saying that determination is nary “exemption” and that caller duties are coming.

“NOBODY is getting ‘off the hook,'” Trump said on Truth Social Sunday. “There was nary Tariff ‘exception’ announced connected Friday. These products are taxable to the existing 20% Fentanyl Tariffs, and they are conscionable moving to a antithetic Tariff ‘bucket.’”

“We are taking a look astatine Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN successful the upcoming National Security Tariff Investigations.”

Late successful the time connected Friday, Trump’s squad filed a regularisation that exempted a myriad of physics devices from the president’s steep “reciprocal” tariff connected Chinese imports to the US.

The ruling appeared to assistance a reprieve for Apple and different user electronics makers, who were facing tariffs of up to 145% nether Trump’s sweeping caller rules.

More than 80% of Apple products are assembled successful China, according to information from Evercore ISI. Apple CEO Tim Cook has courted adjacent relations with Trump amid the tariff push.

Even earlier Trump upped the ante connected China, experts were suggesting that apical iPhone models could summation successful terms to $2,300 nether the tariff regime.

Prior to Trump’s clarification Sunday, Commerce Secretary Howard Lutnick publicly explained that electronics being imported from China volition soon look their ain unsocial tariff.

“So what he’s doing is he’s saying they’re exempt from the reciprocal tariffs, but they’re included successful the semiconductor tariffs, which are coming successful astir apt a period oregon two. So these are coming soon,” Lutnick told ABC News’ “This Week” connected Sunday.

“All those products are going to travel nether semiconductors, and they’re going to person a peculiar absorption benignant of tariff to marque definite that those products get restored.”

Last Wednesday, arsenic Trump’s suite of customized “reciprocal” tariff rates were acceptable to spell into effect, the president abruptly reversed people and announced a 90-day intermission portion his squad negotiates caller deals with assorted countries. Trump remarked that radical were “getting a small spot yippy, a small spot afraid” arsenic markets cratered amid tariff fears.

Trump kept the 10% baseline tariff connected virtually each imports successful effect and announced a 125% tariff against goods and services coming successful from China. White House officials clarified that China volition inactive look a 20% tariff announced earlier this twelvemonth owed to fentanyl concerns, which brings the full complaint connected astir Chinese imports to 145%.

China is America’s third-largest trading partner

“What has been exposed is that we request to marque products successful the United States, and that we volition not beryllium held hostage by different Countries, particularly hostile trading Nations similar China, which volition bash everything wrong its powerfulness to disrespect the American People,” Trump added.

Right now, electronics products from China still look different tariffs, specified arsenic the 20% complaint Trump imposed earlier this twelvemonth amid his complaints against China’s relation successful the fentanyl crisis.

“We request to person semiconductors, we request to person chips, and we request to person level panels — we request to person these things made successful America. We can’t beryllium reliant connected Southeast Asia for each of the things that run for us,” Lutnick added.

Lutnick explained that the Trump medication is looking to adhd tariff incentives to “encourage” the pharmaceutical manufacture to reconstruct its manufacturing successful the US arsenic well.

“We can’t beryllium beholden and trust upon overseas countries for cardinal things that we need,” Lutnick argued. “So this is not similar a imperishable benignant of exemption. He’s conscionable clarifying that these are not disposable to beryllium negotiated distant by countries. These are things that are nationalist information that we request to beryllium made successful America.”

Before Trump paused the customized tariff rates past Wednesday, his apical lieutenants had been publically adamant that the president did not mean to see immoderate exemptions and that his protectionist displacement was not a negotiating ploy.

Senior counsellor for commercialized and manufacturing Peter Navarro again connected Sunday insisted that Trump’s “policy is nary exemptions, nary exclusions,” contempt the reprieve for electronics.

“The problem, interestingly for chips, due to the fact that this is precise analyzable stuff, is that we don’t bargain a batch of chips, similar successful bags. We bargain them successful products. So what Secretary of Commerce Howard Lutnick is doing arsenic we talk is an probe of the spot proviso chain,” Navarro told NBC’s “Meet the Press” connected Sunday.

It is not wide what complaint the Trump medication is eyeing for its planned semiconductor tariff.

Former President Joe Biden attempted to re-shore semiconductor manufacturing done the 2022 bipartisan CHIPS and Science Act, which featured subsidies to spot companies. Trump has been captious of the CHIPS Act and argued that tariffs are a much effectual means of bringing backmost semiconductor accumulation to the US.