U.S. Commerce Secretary: "Tariff Exemptions" for Electronics Are Temporary, Semiconductor Industry Tariffs Are Expected to Arrive Soon!

Last Friday evening, the US Customs and Border Protection, responsible for collecting tariffs, announced that a series of products would be excluded from the previously announced "reciprocal tariffs." The categories included communication equipment (smartphones), computers, semiconductor equipment, integrated circuit devices, etc.

The market finally breathed a sigh of relief.

However, by last Sunday, US Commerce Secretary Howard Lutnick hurriedly clarified that the Trump administration's move to exempt smartphones, computers, and other electronic products from comprehensive "reciprocal" tariffs was only a temporary measure. These devices would be covered by the upcoming industry-based tariffs.

"This is not a permanent exemption. (Trump) is just clarifying, these are not issues that can be resolved through negotiations with other countries. These are matters of national security, we need to manufacture them in the US," he said in a program.

According to Lutnick, the excluded devices, such as smartphones, computers, routers, and other electronic products, might be included in the tariffs President Trump is expected to impose on semiconductors.

"So, what he (Trump) is doing is, while these products are not subject to reciprocal tariffs, they are included in the semiconductor tariffs, which may be introduced in a month or two. So, these are coming soon. You shouldn't think this is abnormal. Consider it as part of the semiconductor tariffs," he added.

Lutnick also emphasized that imposing tariffs on semiconductors is part of the effort to bring the manufacturing of these electronic products back to the US.

On the same day, Trump himself denied that these tariff exemptions amounted to "exceptions," arguing instead that these products were moved to different tariff "categories," and hinted that his administration might still impose separate tariffs on the semiconductor industry and the broader electronics supply chain.

"In the upcoming national security tariff investigation, we will focus on semiconductors and the entire electronics supply chain," Trump said.

However, given Trump's consistently erratic stance on tariff policies, it remains uncertain how these tariff policies and the trade war, which has gripped the nerves of people worldwide, will develop.