Trump’s semiconductor tariffs: 2025 economic impact
Washington, April 13 – The tech world may be in for big changes.
U.S. President Trump will be announcing new tariffs on imported semiconductors shortly. Some companies may receive a reprieve, but others – such as producers of smartphones and laptops – may be paying more in the future.
We want to make it simpler,” Trump told reporters aboard Air Force One returning to Washington. “We want to make chips, semiconductors, and more right here at home.”
His words suggest that previous tariff exemptions for phones and computers may not be long-lasting.
A National Security Move?
Only hours earlier, Trump called for a fresh national security inquiry into the semiconductor sector and wider electronics supply chain. He took to social media, stating the administration would be closely examining the whole sector in a new series of tariff reviews.
That came just a few days after the White House offered temporary tariff relief on certain technology products. It fueled guarded optimism among consumers and manufacturers that smartphones and laptops, among other things, could be exempted from the escalating U.S.-China trade war. That optimism did not last.
Tariff Twist: Exemptions. But Not Really, Commerce Secretary Howard Lutnick was clear on Sunday: New tariffs are still coming.
While phones and computers were exempted from the wider reciprocal tariffs, they’ll probably be targeted with new charges under a different plan aimed at semiconductors and other high-tech goods. These tariffs may be been out in the next month or shortly.
“He’s not adding them to the retaliatory tariffs, but they are categorically included in the coming semiconductor tariffs,” Lutnick said on ABC’s This Week. “It’s all about bringing production of these essential products back to the U.S.”
Markets Jittery, Industry Reacts As anticipated, the news sent shockwaves. The S&P 500 has already fallen more than 10% since Trump’s inauguration, and Wall Street has been trading wildly since these tariff negotiations heated up.
China didn’t remain silent either. In reaction to the U.S. moves, Beijing increased its tariffs to 125% and stated that it is carefully observing the latest actions.
Among businesspeople, the responses have been divided. Billionaire investor Bill Ackman, a Trump supporter earlier, demanded a 90-day tariff suspension and proposed a less drastic 10% rate instead. “That would still motivate U.S. firms to move supply chains without so much disruption,” he tweeted on X.
Meanwhile, market strategist Sven Henrich wasn’t shy: “The largest market rally of the year would occur the day Lutnick is fired,” he joked on the internet, exasperated with the administration’s mixed signals. “Companies can’t make any plans with all this going back and forth.”
Criticism Mounts from Both Sides on the political side, Senator Elizabeth Warren denounced the situation as “chaos and corruption” in a Sunday interview. Economists are warning that the reversals will dampen growth and drive inflation even higher.
Despite all the back-and-forth, some technology products remain temporarily exempted. A Customs and Border Protection list published Friday indicates 20 types of products exempted from tariffs for the time being – including computers, memory chips, and flat displays.
But for how long? That is still to be determined. Talks, But Not with China – has not yet initiated talks with nations such as India, Japan, and the EU. Notably, he omitted China from the discussion.
Trade Rep. Jamieson Greer informed CBS’s Face the Nation that no plans for Trump to address China’s President Xi are imminent. Nevertheless, he hoped to seal other agreements soon. “We could have agreements in place with several countries within weeks,” he said.
A Worrying Economic Outlook Economist Ray Dalio spoke out even further. On Meet the Press, he cautioned that the U.S. might be on the brink of a recession — or worse.
Politicians Have Opinions, Too Senator Elizabeth Warren was not afraid to speak up either, criticizing the whole process.
“There’s no tariff policy — just confusion and corruption,” she told ABC’s This Week.
And although certain products such as laptops, memory chips, and flat panels remain temporarily exempted, there’s not much transparency on how long that will remain the case.
Negotiations… But Not with China
White House trade adviser Peter Navarro confirmed that although negotiations are underway with allies such as the EU, Japan, and India, China hasn’t been asked to the table — at least, not yet.
Trade Rep. Jamieson Greer also eliminated any intended discussion between Trump and Chinese President Xi Jinping for the time being but indicated he’s optimistic about closing other overseas deals shortly.
A Larger Economic Issue Hanging Overhead
Ray Dalio, the billionaire behind the world’s biggest hedge fund, didn’t mince words — he warned that the U.S. could be heading toward serious economic trouble if things don’t turn around soon. might be on the brink of recession. “We’re at a critical tipping point,” Dalio said. “If this situation is mishandled, it could lead to something worse than a recession.
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