Chips From China To Face National Security Probe, Says Trump; Hints Towards More Tariff
The US-China trade war continues with President Trump suggesting new tariffs on computer chips and a national security investigation into semiconductors.
The US-China trade war seems far from over after President Donald Trump hinted on Sunday that his administration would pursue new duties on the powerful computer chips inside smartphones and other technologies. He also pledged a national security trade investigation into the semiconductor sector.
The announcement comes just two days after the White House announced the exclusion of a range of electronics from the steep import taxes applied on goods arriving from China.
Those electronics "are just moving to a different Tariff 'bucket," Trump said in a post on his social media. "We are taking a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN in the upcoming National Security Tariff Investigations," he added.
ALSO READ | US Says Tariff Exemption On Electronics Temporary As 'Focused' Semiconductor Levies To Follow
Separate New Duties For Critical Tech Parts
On Sunday, Trump's commerce secretary Howard Lutnick said that critical technology products from China would face separate new tariffs along with semiconductors within the next two months.
He said that Trump would enact "a special focus-type of tariff" on smartphones, computers and other electronic products in coming months, alongside sectoral tariffs targeting semiconductors and pharmaceuticals.
Lutnick further said that the new duties would fall outside Trump's so-called reciprocal tariffs, which levies on Chinese imports climbed to 125 per cent last week.
"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," Lutnick told ABC during an interview.
ALSO READ | Trump's Tariff Reset On Electronics Gives India, Vietnam 20 Per Cent Price Advantage Over China
'Made In America'
The commerce secretary predicted that the tariffs would bring production of those products to the US. "These are things that are national security, that we need to be made in America," he said.
The exclusions which were announced on Friday were viewed as a big break for technology giants like Apple and Dell Technologies that rely on importing components from China.
The back-and-forth of imposing tariffs by Trump sent shockwaves in the global financial market last week, triggering the wildest swing on Wall Street since the 2020 Covid pandemic.
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