In a surprising twist in the ongoing trade war between the U.S. and China, Commerce Secretary Howard Lutnick announced that smartphones, computers, and other electronics — which were recently exempted from high tariffs — will soon face new levies. These fresh duties, expected to roll out within the next two months, are part of President Donald Trump’s intensified push to shift tech manufacturing back to the United States.
Speaking on ABC’s “This Week,” Lutnick revealed that these new tariffs would specifically target critical tech products such as smartphones, laptops, and semiconductors. This announcement follows a temporary reprieve granted late last week, when the Trump administration excluded some tech items from the steep reciprocal tariffs currently imposed on Chinese imports.
But that break for tech giants like Apple and Dell appears short-lived.
“This will be a special focus-type of tariff,” Lutnick said. “While these products are exempt from the reciprocal tariffs, they are still included in the upcoming sectoral tariffs — particularly on semiconductors and other vital tech.” Lutnick added that the goal is to bring manufacturing of sensitive technology back to U.S. soil under the banner of national security.
Trump’s tariff strategy — introduced with a flourish on what he dubbed “Liberation Day” (April 2) — has wreaked havoc across global financial markets. Since the start of his administration, the Standard & Poor’s 500 index has dropped more than 10%, fueled in large part by volatile tariff announcements and retaliatory measures from China.
Just this past Friday, Beijing raised its own tariffs on U.S. imports to a staggering 125%. China’s Ministry of Commerce responded cryptically, stating, “The bell on a tiger’s neck can only be untied by the person who tied it,” signaling that the ball is in Trump’s court to de-escalate.
Criticism of the administration’s unpredictable tariff policies has been fierce. Senator Elizabeth Warren slammed Trump’s moves, calling the entire tariff rollout “chaos and corruption.” Likewise, billionaire investor Bill Ackman urged the president to pause the China tariffs for 90 days to give U.S. companies time to adapt and possibly negotiate a better deal.
On Friday, U.S. Customs and Border Protection released a list of 20 excluded product categories, including memory chips, laptops, disc drives, and flat panel displays. However, this only applies to Trump’s reciprocal tariffs. The earlier 20% tariffs linked to fentanyl-related trade remain in full effect.
Meanwhile, White House trade adviser Peter Navarro and U.S. Trade Representative Jamieson Greer have made it clear that while the door is open for negotiations, China is not currently among the countries actively engaged in talks with the U.S.
As tensions rise and economic uncertainty looms, billionaire hedge fund manager Ray Dalio issued a stark warning: “We’re very close to a recession, and I fear something worse if this isn’t managed properly.”
One thing is clear — this trade war is far from over, and the next few months could define the economic trajectory of both nations.
