President Trump announced that he would be setting a tariff rate on imported semiconductors within the next week, with some flexibility for certain companies in the industry. This decision suggests that smartphones and computers may not be excluded from the tariffs for long, as Trump aims to promote domestic production of chips and other electronics. Additionally, a national security trade probe into the semiconductor sector has been initiated.
While initially excluding certain products from reciprocal tariffs on China, Commerce Secretary Lutnick clarified that technology products from China, including smartphones and computers, will face new duties along with semiconductors in the near future. These additional tariffs are intended to bring production of these products back to the United States.
Investor Bill Ackman called on Trump to pause the broad tariffs on China for three months to allow for supply chain relocation without disruption. Critics, including Senator Elizabeth Warren, have slammed the lack of a coherent tariff policy and the economic impact of the back-and-forth on tariffs.
Despite hopes for negotiations with China and other countries, there are concerns about the potential for a recession as a result of the tariffs. Billionaire investor Ray Dalio warned that the US is at a critical decision-making point that could lead to economic downturn if not handled properly.
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