President Donald Trump has clarified his administration’s trade stance, asserting that “no one is getting off the hook” despite a recent notice exempting certain high-tech products from his “reciprocal” tariffs, Al Jazeera reports.
The clarification comes after initial reports suggested a softening of the administration’s approach towards China.
On Sunday, Trump stated on his Truth Social platform that the exemptions were not a general reprieve, explaining that smartphones, laptops, and other previously exempted products were still subject to an existing 20 percent duty and were simply being moved to a different tariff category.
“We will not be held hostage by other Countries, especially hostile trading Nations like China,” he wrote.
Speaking to reporters on Air Force One, Trump further announced new tariffs on semiconductors to be implemented in the coming week, adding that flexibility would be considered for some companies in the sector.
US Secretary of Commerce Howard Lutnick echoed this sentiment, stating the reprieve for high-tech products, many manufactured in China, was temporary. He told ABC News that the exempted products would be “included in the semiconductor tariffs, which are coming in probably a month or two.”
The tit-for-tat trade actions between the US and China have resulted in Washington raising import taxes on Chinese goods to 145 percent, with Beijing retaliating with a 125 percent duty on US imports.
While Beijing initially welcomed the exemptions as a “small step” and called for a complete cancellation of tariffs, Trump’s recent comments have dampened hopes of a de-escalation.
The US Customs and Border Protection had previously listed 20 broad categories of high-tech products not subject to the “reciprocal” tariffs, including semiconductors, flat panel displays, and computers.
Trump’s shifting stance has contributed to uncertainty surrounding his trade policies, unnerving businesses and financial markets. The president’s back-and-forth announcements on tariffs have caused significant volatility in global stock markets in recent weeks.
Following an announcement of sweeping tariffs on numerous trade partners on April 2, which sent markets plummeting, Trump abruptly announced a 90-day pause on most of the measures. However, this reprieve did not extend to China, which faced even higher tariffs.
Despite the ongoing tensions, the White House maintains that Trump remains optimistic about securing a trade deal with China, though they have indicated that Beijing is expected to initiate contact.
On Sunday, US stock futures moved higher, with those tied to the S&P 500 and the tech-heavy Nasdaq Composite up approximately 0.5 percent and 0.8 percent, respectively, as of 10pm EST (03:00 GMT Monday).
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