Trump administration exempts tech from tariff chaos
The administration of US President Donald Trump quietly introduced exemptions from tariffs, excluding smartphones, computers, and other electronic devices and components, Bloomberg reported on Saturday. This may ease the price shock for consumers while simultaneously benefiting giants in the electronics industry.
Bloomberg, citing a US Customs document, states that the U.S. will implement tariff exemptions for smartphones, laptops, hard drives, computer processors, and memory chips. In short, popular consumer electronics that are not manufactured in the U.S. and would take years to produce domestically. The list also includes machines used for semiconductor manufacturing. The White House has not officially commented on these reports.
The US takes a step back. Tariff exemptions announced quietly
The reports emerged after a tumultuous week in stock and bond markets, increasing uncertainty among countries, investors, and businesses grappling with its trade policy. The US President imposed higher tariffs on dozens of countries, then unexpectedly suspended tariffs on April 9th, following volatile reactions from financial markets. However, the tariffs with respect to China were increased.
The trade conflict between the US and China, with tariffs significantly exceeding one hundred percent, threatens $690 billion (956 billion CAD) in trade. Beijing raised tariffs on all American goods to 125%, responding to escalation from the White House. "I think something positive is going to come out of that," Trump said, referring to the dispute with China.
Trump downplayed fluctuations in the US bond market, which were a factor in his tariff policy change. "The bond market's going good. It had a little moment but I solved that problem very quickly," he stated in his usual style on Friday. The US President also assured that the dollar will remain the "currency of choice" globally, although its value has been regularly declining since he returned to the White House.
