Trump warns of potential new tariffs on smartphones .

Donald Trump has stated that smartphones and other electronics manufactured in China will not be exempt from tariffs, indicating they will simply fall under a different category of levies. 

Following the announcement on Friday that certain products would avoid tariffs of up to 145%, European stock markets experienced a rise on Monday morning.

In response, China urged Trump to fully abolish his tariff policies and to embrace a path of mutual respect. However, U.S. officials clarified on Sunday that these products would instead face a “semiconductor tariff,” with Trump anticipated to provide further details soon.

U.S. Commerce Secretary Howard Lutnick emphasized that this new levy would be in addition to a range of global tariffs imposed earlier this month, which have been temporarily paused for 90 days. 

He stressed the importance of having essential medicines, semiconductors, and electronics produced domestically. Additionally, a customs notice revealed on Saturday that smartphones, computers, and certain electronic devices would be exempt from the 125% tariff on imports from China

Trump responded on social media, asserting that there are no exemptions for certain products and labeling reports regarding this notice as ‘inaccurate.’ He clarified that these items are simply being categorized under a different tariff classification. 

Trump indicated that the administration is examining ” semiconductors ”and the entire electronics supply chain as part of upcoming National Security Tariff Investigations. 

The Chinese commerce ministry characterized Trump’s exemptions as a “small step” and mentioned that Beijing is assessing the implications of this decision. However, the indication from Trump administration officials about potential future tariffs may undermine expectations for a reduction in the protectionist stance of both nations. When asked on CBS’s Face the Nation about any plans for Trump to engage with Chinese President Xi Jinping, U.S. Trade Representative Jamieson Greer stated that there are currently no such plans. 

In early April, Trump implemented a 54% tariff on Chinese imports, which has since escalated to 145%. In retaliation, China has raised its tariffs on U.S. goods from 34% to 84%, and most recently to 125%, effective Saturday. The Chinese commerce ministry declared last week that it would “fight to the end” if the U.S. continues to provoke a tariff or trade war.