Trump Walks Back Exemption, Threatens New Tariffs on Smartphones and Electronics

Washington, D.C. – Former President Donald Trump has signaled a reversal in his administration’s trade policy just days after smartphones and other electronics appeared to be spared from hefty import tariffs. Speaking on social media Sunday, Trump denied the existence of any exemptions and hinted that these products are instead being reclassified under a new tariff category focused on semiconductors.

“There is no exemption,” Trump wrote. “They are just moving to a different Tariff ‘bucket.’”

The clarification came after a U.S. Customs notice issued Saturday suggested smartphones, laptops, and related electronics had been temporarily excluded from a 125% tariff on Chinese imports. The news had spurred optimism in global markets, particularly in Europe, where stocks climbed on Monday morning following the announcement.

However, Trump’s comments injected fresh uncertainty into the trade outlook. He emphasized that a broader review of the entire electronics and semiconductor supply chain is underway as part of upcoming National Security Tariff Investigations. An official update on semiconductor levies is expected Monday.

Tariffs Rebranded as National Security Measures

U.S. Commerce Secretary Howard Lutnick confirmed that new tariffs on semiconductors would complement the sweeping global tariffs already in place. Earlier this month, the U.S. imposed a 54% levy on Chinese goods, which escalated to 145%, only to be paused briefly for a 90-day review.

“We need our medicines, our semiconductors, and our electronics built in America,” Lutnick said, reinforcing the administration’s emphasis on domestic manufacturing as a national security priority.

The sudden policy pivot casts doubt on earlier signs of a potential de-escalation in the U.S.–China trade war. China’s Ministry of Commerce had described the earlier exemptions as a “small step” and urged Washington to “completely cancel” its tariff regime and “return to the right path of mutual respect.”

Market Reactions and Global Impact

The conflicting messages have created market volatility and left consumers and companies uncertain about future pricing. Sony, for instance, announced on Monday a 10% price hike for its PlayStation 5 console across Europe, Australia, and New Zealand, citing inflation, exchange rate instability, and broader economic pressures. No price changes were announced for the U.S. market.

The White House maintains that tariffs are a strategic tool to secure better trade deals and protect American jobs. Yet critics argue that the measures are disruptive and risk sparking a deeper global economic slowdown.

Rising Tensions, No Diplomatic Talks Scheduled

On Sunday, U.S. Trade Representative Jamieson Greer confirmed that no direct communication is currently planned between Trump and Chinese President Xi Jinping, suggesting a prolonged standoff.

“Right now, we don't have any plans on that,” Greer said during an interview on CBS’s Face the Nation.

Meanwhile, China has vowed to retaliate, having already raised its tariffs on U.S. goods to 125%, mirroring the U.S. hikes.

“If the U.S. insists on provoking a trade war, we will fight to the end,” China’s Ministry of Commerce said in a recent statement.

As the tariff standoff deepens, businesses and consumers brace for potential ripple effects across industries—particularly in tech and retail, where electronics and semiconductors are critical components.

More announcements from Trump’s team are expected later this week, potentially outlining the full scope of the semiconductor-focused tariff regime and its implications for the global supply chain.