Tariffs Off, Tariffs On: Tech Industry Scrambles as White House Sends Mixed Signals
Confusion reigns in the US technology sector as President Donald Trump’s administration lurches between tariff exemptions and looming new levies, leaving major electronics producers and consumers in a state of limbo.
Late Friday, US Customs and Border Protection appeared to offer a reprieve on punitive import duties for electronics like smartphones, laptops, and semiconductor equipment. But the break may be short-lived, as multiple White House insiders hint at new “sectoral tariffs” targeting the very same products.
The initial exemption was intended to shield Apple, Nvidia, and other major tech manufacturers from duties as high as 125% on Chinese imports and 10% for imports from other countries. Treasury Secretary Scott Bessent was said to be instrumental in getting Trump to back down on Chinese phone and computer tariffs, citing sources that also suggested Trump trade advisor Peter Navarro was sidelined.
“Ok so all this tells me is that electronics are exempt from the headline 145% on China but that’s only because they were already going to be tariffed under ‘sectoral tariffs’ which we do not yet know the rates of,” wrote one skeptical observer on social media.
Muddling the issure, it was further relayed that semiconductor and electronic tariffs “will come in a month or so,” quoting senior White House adviser Howard Lutnick.
Meanwhile, Trump denied any real climbdown was ever in play. “There was no Tariff ‘exception’ announced on Friday,” he said in a post, asserting that those same products remain subject to a 20% duty tied to China’s role in fentanyl trafficking. While this lesser-known levy predates the “reciprocal tariffs,” it still ensnares a wide swath of tech imports.
Critics say the administration’s unpredictable moves risk jolting consumer prices and rattling corporate strategy. “We live in a headline & tweet news ecosystem,” commented one social media user, arguing that the flurry of announcements “merely reclassifies” electronics rather than granting true relief.
A separate 20% tariff tied to China’s alleged role in fentanyl production remains in force, further complicating the outlook for electronics. As White House Press Secretary Karoline Leavitt put it, “President Trump has made it clear America cannot rely on China to manufacture critical technologies.”
Adding to the uncertainty is the administration’s plan to launch a fresh Section 232 investigation into semiconductor imports. While chipmakers such as Taiwan Semiconductor Manufacturing Co. and Intel are expanding US facilities, they worry unexpected tariffs on equipment imports will inflate costs, especially for machines essential to producing advanced semiconductors.
For its part, the White House defends the chaos as a calculated strategy to shore up American manufacturing.
“President Trump has made it clear America cannot rely on China to manufacture critical technologies such as semiconductors, chips, smartphones, and laptops,” said Leavitt, arguing that tech giants must “onshore” their supply chains in exchange for preferential treatment.
Trump has hinted at more decisive statements coming “on Monday.”
Information for this story was found via Bloomberg and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
