The tariff exemption of President Trump for iPhones and other Chinese manufacturing electronics can only be temporary, said Secretary of Commerce Howard Lutnick on Sunday two days after the White House announced the change.
“So, what he is do is that he is saying that they are exempt from reciprocal tariffs, but they are included in semiconductor rates, which are probable one or two months. So the thesis will arrive soon,” Lutnick said.
“All these products will be low semiconductors, and they will have a special type of approach rate to ensure that these products are restored.”
At the last minute of Friday, Trump’s team presented a rule that exempts a myriad of electronic devices of the “reciprocal” tariff of the president about Chinese imports to the United States.
The ruling granted a postponement for Apple and other consumer manufacturers Electrics, which faced tariffs of up to 145% under the new radical rules of Trump.
More than 80% of Apple products are assembled in China, according to Evercore ISI data. Apple’s CEO, Tim Cook, has covered the narrow relationships with Trump in the midst of the tariff’s thrust.
Even before Trump raised the bet in China, experts suggested that the main iPhone models could increase the price to $ 2,300 under the tariff regime.
Last Wednesday, when the Trump’s “reciprocal” reciprocal “tariff rates set came into force, the president abruptly reversed the course and announced a 90 -day pause team negotiates new agreements with several countries. Trump commented that people “were a little Yippy, a little scared” as the markets opened in the midst of the fears of rates.
Trump maintained the 10% basal rate over all virtual imports in force and announced a 125% tariff against the goods and services that came from China. White House officials clarified that China will still face 20% tar announced earlier this year due to Fentanyl Conerns, which carries the total rate of most Chinese imports to 145%.
China is the third largest commercial partner in the United States
China’s electronic products would still face other rates, such as the 20% rate that Trump imposed earlier this year in the midst of his complaints against China’s role in the fentanyl crisis.
“We need to have semiconductors, we need to have french fries and need to have flat panels; we need to have these things in the United States. We can depend on Southast Asia for all the things that operate for us,” Lutnick added.
Lutnick explained that the Trump administration is looking to add tariff incentives to “encourage” the pharmaceutical industry to restore its manufacture in the United States as well.
“We could be used and trust foreign countries for fundamental things we need,” Lutnick argued. “So this is not like a kind of permanent exemption. It only clarifies that these are not available to be negotiated by the country. These are the national security that we must do in the United States.”
Before Trump stopped the personalized rates rates last Wednesday, his main lieutenants had publicly convinced that the president did not intend to include any exemption and that his protectionist change was not a negotiating ploy.
The main counselor for trade and the manufacture of Peter Navarro again insisted that Trump’s policy is not exemptions, there are no exclusions, “despite the breath for electronics.
“The problem, curiously for french fries, because this is very complex, is that we do not buy many chips, as in the bags. We buy them in products. So, in what secretary of Commerce Howard Lutnick we speak” Navarro “, Navarro, Domingo?
It is not clear what rate is looking at the Trump administration for its planned semiconductor rate.
Former President Joe Biden tried to re -establish the manufacture of semiconductors through the 2022 bipartis science law, which presented subsidies to Chips companies. Trump has criticized Chips’s law and argued that tariffs are a more effective means to bring back the production of semiconductors to the United States.
