President Donald Trump announced that new tariffs on imported semiconductors will be revealed within the next week, with additional duties on smartphones, computers, and other electronics expected to follow in the coming months.
Speaking to reporters aboard Air Force One, Trump stated that flexibility will be granted to certain companies but emphasized the need to boost domestic manufacturing in key tech sectors. “We want to make our chips and semiconductors and other things in our country,” he said.
The move comes just days after the administration temporarily excluded consumer electronics from its broader reciprocal tariff plan targeting Chinese imports. However, Trump’s latest comments indicate that those exemptions may soon be lifted.
Earlier Sunday, Trump announced a national security trade investigation into the semiconductor industry and the broader electronics supply chain. Commerce Secretary Howard Lutnick confirmed that the administration is preparing a separate set of duties for critical technology imports from China, which would include semiconductors and pharmaceuticals.
“These will be focused, sector-specific tariffs outside the reciprocal tariff structure,” Lutnick said, estimating implementation within the next one to two months.
The back-and-forth messaging around tariffs has contributed to significant market volatility. Last week, Wall Street experienced its most turbulent period since the COVID-19 pandemic in 2020, with the S&P 500 down more than 10% since Trump took office in January.
Meanwhile, China responded by raising tariffs on U.S. imports to 125%, while also evaluating the recent exclusions on technology products announced by the U.S. Customs and Border Protection.
Critics from both political and financial sectors expressed concern over the administration’s evolving trade stance. Senator Elizabeth Warren called the strategy “chaotic,” while investor Bill Ackman urged the White House to pause tariffs on China for 90 days to avoid further economic disruption.
Despite calls for clarity, administration officials insisted negotiations are ongoing, with talks underway with countries including the UK, EU, Japan, and India. No direct communication with Chinese President Xi Jinping has been scheduled, according to U.S. Trade Representative Jamieson Greer.
Billionaire hedge fund manager Ray Dalio warned on Sunday that mishandling the situation could push the U.S. economy into recession or worse. “We are very close to a recession,” Dalio said. “And I’m worried about something worse if this isn’t handled carefully.”
The full impact of the upcoming semiconductor and electronics tariffs remains to be seen, but economic and diplomatic tensions continue to rise as both nations navigate an escalating trade conflict.
