US President Donald Trump has warned that exemptions on smartphones, laptops, and other electronics from Chinese import tariffs will soon expire, reaffirming his tough stance on trade and national security.
No One is ‘Getting Off the Hook’
Posting on Truth Social, Trump clarified that the 90-day tariff relief granted last week does not mean a full exception, stating that products remain subject to a 20% “Fentanyl Tariff” and will soon move into a new national security tariff category.
“There was no Tariff ‘exception,’” Trump said. “These products are just moving to a different Tariff ‘bucket.’”
He also promised to launch a national security trade investigation into semiconductors and the electronics supply chain, citing China as a “hostile trading nation” and stressing the need for the US to avoid being “held hostage.”
Tech Sector Faces Renewed Tariff Threats
The temporary exemptions—announced Friday—briefly boosted US stock markets, with companies like Apple and Nvidia seeing potential gains as tariffs were paused for some of their key Chinese-made imports.
However, Commerce Secretary Howard Lutnick said on Sunday that new, sector-specific tariffs targeting smartphones, computers, semiconductors, and pharmaceuticals would be introduced within one to two months.
“These are things that are national security, that we need to be made in America,” Lutnick told ABC, adding that Trump will impose “special focus-type” tariffs separate from the existing reciprocal tariff regime.
China Pushes Back as Trade War Deepens
In response, China’s commerce ministry said the US was only taking “a small step toward correcting its erroneous unilateral practices,” while urging a complete cancellation of Trump’s tariff policies.
Chinese state officials highlighted the importance of Chinese manufacturing to American tech companies, reinforcing China’s stance that the US is economically reliant on Chinese innovation and production.
President Xi Jinping responded to the escalating conflict by warning that protectionism “leads nowhere” and reiterated that “a trade war has no winners.” China’s Customs agency stated that the country’s diversified export markets and strong domestic demand would help weather the storm.
Market Volatility and Political Backlash
Trump’s erratic tariff policy has triggered the wildest market swings since the COVID-19 pandemic, with the S&P 500 down more than 10% since he took office in January 2025. The US dollar is weakening, consumer confidence has dropped, and bond sell-offs have intensified.
Critics, including Senator Elizabeth Warren, blasted the tariff U-turns:
“There is no tariff policy—only chaos and corruption,” Warren said on ABC’s This Week.
What Comes Next
As China retaliates with 125% tariffs and Trump pushes for new national security tariffs, economists warn of increased inflation, disrupted supply chains, and risks of a global recession.
Despite the backlash, Trump remains defiant, betting that aggressive tariff actions will reshore US manufacturing, especially in sensitive industries like semiconductors and electronics.
Meanwhile, Xi Jinping embarks on a diplomatic tour of Southeast Asia, beginning with Vietnam, as China seeks to bolster regional alliances and diversify economic partnerships amid the intensifying US trade confrontation.
