US to Impose Tariffs on Electronics, Pharmaceuticals in Fresh Trade Offensive Against China

WASHINGTON, D.C. — The United States will impose new tariffs on Chinese electronics and pharmaceutical goods beginning next month, marking a significant shift in President Donald Trump’s trade policy aimed at curbing reliance on foreign supply chains.

Commerce Secretary Howard Lutnick confirmed on Sunday that semiconductors, smartphones, and other electronic components would be subject to incoming sector-specific duties, along with a new wave of tariffs targeting pharmaceutical imports. The announcement comes just days after a temporary exemption for consumer electronics was issued by U.S. Customs and Border Protection, in an effort to protect American consumers from inflation-driven price spikes.

“We can’t be relying on China for fundamental things that we need,” Lutnick said in an interview with ABC’s This Week. “Our medicines and our semiconductors need to be built in America.”

The upcoming tariffs are part of the Trump administration’s expanded “reciprocal tariff” regime, which proposes import duties as high as 145% on targeted Chinese goods. Electronics had initially been excluded from the list, but are now firmly back in the crosshairs.

Policy Reversal Sparks Global Market Concerns

The reversal marks a pivot in U.S. trade strategy following mounting pressure from national security advisors and domestic manufacturers. Initially, consumer-facing electronics — such as smartphones, laptops, hard drives, and memory chips — were left off the tariff list to shield the American public from a sudden surge in retail prices. Industry analysts had warned that including those items could spark severe price inflation and disrupt supply chains in the short term.

But Lutnick confirmed the exemption was always intended to be temporary. He stated the tariffs are now designed not just to penalize Beijing, but to incentivize U.S.-based production in critical sectors like pharmaceuticals and semiconductors.

“President Trump will use a new tariff structure to encourage these industries to bring their supply chains home,” Lutnick said.

Tech Industry Reacts as Tariff Uncertainty Grows

The rollback of the exemption sent fresh shockwaves through global markets. Tech giants like Apple, Samsung, and Nvidia, which saw short-term gains last week, are now bracing for renewed turbulence. Apple, which had previously lost over $640 billion in market value following the initial tariff proposal, could see further disruption. Analysts warn that the price of new iPhones could climb as high as $3,500, with cost burdens passed on to consumers.

The decision to reinclude semiconductor manufacturing equipment and other tech-critical components has rattled investors already wary of prolonged trade volatility.

Beijing Condemns Move, Calls for Policy Reversal

China responded swiftly to the U.S. announcement. In a statement issued late Sunday, the Chinese Ministry of Commerce urged Washington to “correct its mistakes” and reverse what it described as “a dangerous and wrong practice.”

“We urge the U.S. to cancel the 145% tariff hike and return to the path of mutual respect and cooperation,” the ministry said, branding the temporary exemption on consumer electronics a “small step” that failed to address broader concerns.

In retaliation, Beijing has implemented its own round of punitive tariffs, raising import duties on U.S. goods by 125%, further escalating a trade standoff that has alarmed businesses and governments worldwide.

A New Era of Trade Protectionism?

The tariff dispute, initially focused on balancing trade deficits, has now become a full-blown geopolitical confrontation centered on supply chain sovereignty and strategic decoupling.

The electronics sector — long seen as the poster child of global economic integration — is now being reshaped by nationalistic industrial policies. Experts warn that the realignment could have long-term consequences for global innovation, manufacturing, and consumer pricing.

The White House insists the moves are necessary to protect national security and ensure American self-reliance in essential sectors. But critics caution that an aggressive tariff-first approach risks economic blowback and could isolate the U.S. in an increasingly interconnected world.