Tariff turmoil hits markets as Trump Administration exempts tech devices from tariffs
The Trump Administration announced that tech devices like smartphones and computers will be exempt from the 125% tariffs on Chinese imports.
(NBC)- This morning, the Trump Administration announced that tech devices like smartphones and computers will be exempt from the 125% tariffs on Chinese imports. However, a 20% levy remains in place for these products, providing a temporary reprieve that gave stock markets an early boost. Despite the relief for tech consumers, President Trump suggested that this exemption may be short-lived, with new tariffs on imported semiconductors expected soon. “Like we did with steel, like we did with automobiles, like we did with aluminum, which are now fully on, we’ll be doing that with semiconductors, with chips,” the President said, hinting at more drastic measures in the coming weeks.
Commerce Secretary Wilbur Ross confirmed that smartphones and computers would be included in the new sector tariffs, adding that the administration would also focus on tariffs targeting pharmaceuticals. “We need our medicines and we need semiconductors and our electronics to be built in America,” Ross stated.
The uncertainty surrounding when these tariffs could be implemented — and at what price — has left American consumers on edge. “I shouldn’t have to be checking the news every single day to make sure I can afford products that we’ve all been kind of accustomed to,” said Joe Lico, an Apple store customer.
Small businesses that rely on imports from China are also preparing for price hikes, with many stockpiling goods in advance. “They just kept exponentially growing, and so it’s been really a nightmare,” said Jeremy Rice, co-owner of House by JSD Co. These signs of economic stress have raised concerns among financial experts like Ray Dalio, who famously predicted the 2008 financial crisis. “I think that right now we are at a decision-making point and very close to a recession. And I’m worried about something worse than a recession if this isn’t handled well,” said Dalio, the Chief Investment Officer at Bridgewater Associates.
