WASHINGTON: The United States will impose new tariffs on consumer electronics and semiconductor-related products within the next two months, ending the temporary exemptions granted under President Donald Trump’s reciprocal trade tariff programme, US Commerce Secretary Howard Lutnick has said.
Speaking during an appearance on ABC News, Lutnick clarified that while smartphones, laptops, memory chips, and other electronics have been temporarily excluded from the current tariff regime, they will soon fall under a separate set of duties.
“All those products are going to come under semiconductors, and they’re going to have a special focus type of tariff to make sure that those products get reshored,” he said.
“We need to have semiconductors, we need to have chips, and we need to have flat panels made in America. We can’t be reliant on Southeast Asia for all of the things that operate for us,” Lutnick added.
The US administration has initiated a Section 232 investigation into semiconductors, paving the way for targeted tariffs on critical technology imports.
Section 232 allows the President to adjust imports that threaten national security, and has previously been used to impose tariffs on steel, aluminium, and automobiles.
According to Lutnick, the temporary exemptions are not permanent. “So what President Trump is doing is he’s saying they’re exempt from the reciprocal tariffs, but they’re included in the semiconductor tariffs, which are coming in probably a month or two,” he said.
New guidance issued by the US Customs and Border Protection on Friday confirmed exemptions for machines used in semiconductor production and consumer devices such as tablets, computer monitors, Apple Watches, and laptops from the immediate impact of the April 2 executive order.
That order imposed a 10% levy on nearly all US imports, with tariffs on Chinese goods later raised to 125%. A 90-day delay was granted for other countries.
Despite the pause, analysts say the tariff pressure has already rattled global markets. Electronics accounted for roughly $100 billion of US imports from China in 2024, or 23% of total imports, according to the US Census Bureau.
Smartphones and monitors were among the most heavily reliant on Chinese manufacturing, with 81% and 78% of respective imports coming from China last year.
Technology companies such as Apple, HP, Dell, Microsoft, and Samsung—most of which manufacture outside the US—may benefit temporarily.
However, the looming sectoral tariffs could offset those gains. Apple’s share price has dropped approximately 11% since the April 2 announcement.
“This is not a permanent sort of exemption,” Lutnick reiterated, noting that several industry executives were informed that their products would be part of the upcoming semiconductor action.
The US move has drawn sharp criticism from China. The Chinese Ministry of Commerce termed the measures harmful to developing countries and described the action as a “small step” by the US in correcting a flawed unilateral approach.
Trump himself, speaking aboard Air Force One on Friday night, confirmed that further clarification on the exemptions would be provided on Monday.
“There could be a couple of exceptions for obvious reasons, but I would say 10% is a floor,” he said.
