US President Donald Trump has reversed an exemption for Chinese-made smartphones and other electronics, days after announcing they would be exempt from levies of up to 145%. The products will now be subject to a separate “semiconductor tariff” as part of a new levy.
Trump had stated that the exemptions were simply being moved into a different “tariff bucket”, but on Sunday, Commerce Secretary Howard Lutnick clarified that the products would be subject to additional global tariffs. Trump is expected to reveal more details about the semiconductor duties later.
The decision comes after China called on Trump to cancel his tariffs regime and return to a path of mutual respect. US officials argue that the use of tariffs is a negotiating tactic to extract better trade terms from other countries.
Smartphones, computers, and some other electronic devices were initially exempt from the 125% tariff on goods entering the country from China but will now be subject to the new levy as they rely on semiconductors.
Source: https://www.bbc.com/news/articles/c62z54gwd22o