United States (US) President, Donald Trump, announced on Sunday,13 April, 2025 that exemptions for tariffs on electronics, including smartphones and laptops, will be temporary, reversing a brief reprieve granted last week.
The statement, made via social media and reinforced by Commerce Secretary Howard Lutnick, has drawn sharp responses from stakeholders across industries, governments, and consumer groups, highlighting the uncertainty surrounding Trump’s trade policies.
The exemptions, issued last Friday by U.S. Customs and Border Protection, excluded a range of electronics from steep reciprocal tariffs, notably the 125% levy on Chinese imports.
Trump’s clarification that “nobody is getting off the hook” and that new tariffs, particularly on semiconductors, are imminent has rattled tech giants. Apple, a major beneficiary of the initial exemption, faces renewed pressure. CEO Tim Cook, who reportedly engaged with Trump’s team to secure the pause, declined to comment directly but emphasised Apple’s efforts to diversify supply chains.
Industry analysts predict price hikes for consumers if tariffs are reimposed, with estimates suggesting a 20-30% increase for devices like iPhones.
China’s Ministry of Commerce called the initial exemption a “small step” toward correcting U.S. policy but urged a full tariff rollback. Beijing, which raised retaliatory tariffs on U.S. goods to 125%, signalled no retreat, with state media framing the trade war as a test of resilience. Chinese manufacturers, already strained, fear further market losses if exemptions end.
U.S. consumers expressed frustration. “Electronics are expensive enough,” said Sarah Miller, a Chicago-based shopper. “This back-and-forth is confusing and scary for budgets.”
Retail groups warned of disrupted holiday sales, projecting a $200 billion hit to consumer spending if tariffs return.
Meanwhile, some Republican supporters, like Ohio manufacturer Greg Tate, praised Trump’s hardline stance, arguing it protects American jobs. “Short-term pain for long-term gain,” Tate said.
Democratic lawmakers, including Sen. Elizabeth Warren, slammed the policy as chaotic. “It’s a red light, green light game with our economy,” Warren said, citing market volatility.
Financial markets dipped on Monday, with the S&P 500 down 1.2% as investors braced for uncertainty.
Globally, allies like Japan and the EU, spared from broader tariffs for 90 days, urged negotiations to avoid escalation.
Shipping firms reported congestion and rising freight costs, with analysts predicting a trade slowdown if tensions persist. As Trump prepares to detail his tariff plans on Monday, stakeholders remain on edge, navigating a high-stakes economic gamble.
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