Exemptions for smartphones, laptops, and other electronic products from China’s import duties will only be temporary, according to a recent announcement.
President Trump stated in a social media post on Sunday that these products will not be exempt from the existing 20% fentanyl tariffs and will be subject to other tariffs soon.
In another post on his social platform, Trump promised to launch a national security trade investigation into the semiconductor sector and all electronic supply chains.
He added, “We will not allow ourselves to be at the mercy of other countries, especially those with hostile trading practices like China.”
The White House recently announced the removal of some electronic products from China’s mutual tariffs, causing a positive response in the US stock market. Shares of Apple and Chip Maker Nvidia rose as tariffs on imported products to the US were lifted for 90 days.
China’s Commerce Department viewed the exemption as a step towards rectifying the mutual tariff system and called for the cancelation of the entire tariff regime by Washington.
Zhang Li, chairman of the China Information Industry Development Center, emphasized the significance of China for major US tech companies that rely on the country for manufacturing and innovation.
However, Secretary of Commerce Howard Lutnick stated that key technology products from China will face new duties within the next two months, independent of the mutual tariffs.
Lutnick informed that Trump will focus on smartphones, computers, and other electronic products in the coming months, applying separate tariffs to the semiconductor and drug sectors. These tariffs will be considered as national security measures to promote American production.
Since the initiation of Trump’s tariff attack on Chinese imports, the trade war between the world’s largest economies has intensified. Chinese leader Xi Jinping warned against protectionism and emphasized that there are no winners in a trade war.
The back-and-forth of tariffs has led to increased taxes imposed by the US on China and retaliatory taxes set by Beijing. Despite the challenges, China remains optimistic about its domestic demand and market diversity.
Trump’s tariff policies have caused significant fluctuations in Wall Street, affecting government bonds, currency value, and consumer confidence. Criticism from politicians like Senator Elizabeth Warren has raised concerns about the potential impact on economic growth and inflation.
China is seeking to strengthen relations with neighboring countries amidst the trade war escalation. Xi’s visit to Vietnam is part of their efforts to enhance ties with Southeast Asian nations.
Reuters and Assen France Press
Source: www.theguardian.com