Trump smartphone tariff measures ‘coming soon,’ Lutnick says
Commerce Secretary Howard Lutnick said that tariffs on smartphones and other electronics would come “soon.”
The nation and the world were bracing for the next tariff whiplash after Commerce Secretary Howard Lutnick warned levies on crucial technology goods like smartphones were “coming soon” despite President Donald Trump’s announcement last week providing some exemptions for the items.
The exemptions include most of the stiff tariffs Trump levied on all China imports. Lutnick, in an interview April 13 on ABC’s This Week, said Trump would enact a “special focus” tariff on smartphones, computers and other electronics within two months.
“NOBODY is getting “off the hook” for the unfair Trade Balances, and Non Monetary Tariff Barriers, that other Countries have used against us, especially not China which, by far, treats us the worst!” Trump wrote in a Truth Social post later on April 13. “There was no Tariff “exception” announced on Friday. These products are subject to the existing 20% Fentanyl Tariffs, and they are just moving to a different Tariff ‘bucket.’”
Financial markets have struggled mightily in recent days, first with a string of announcements placing tariffs on products from certain nations such as Canada, China and Mexico, and on certain products such as steel and aluminum. In ensuing days the number of nations and products rapidly expanded, crushing the financial markets and fueling turmoil in the bond markets.
A series of temporary tariff rollbacks brought some relief, but uncertainty has prompted concerns of inflation and a possible recession. Aided by the latest tech exemptions, global technology stocks advanced Monday and U.S. stock futures pointed toward gains ahead of the opening bell.
The White House continued to express satisfaction with the tariffs plan thus far.
“This is unfolding exactly like we thought it would,” White House trade advisor Peter Navarro said on NBC’s Meet the Press.
Billionaire investor Bill Ackman, a Trump supporter now at odds with the president over tariffs, called April 13 for a pause on China for three months. Ackman lauded Trump for showing “considerable flexibility”and understanding the challenges U.S. companies face in adapting to the tariffs so rapidly.
China is under pressure to negotiate a deal whether the tariffs take effect immediately or in three months, he said in a post on X. The pause would provide U.S. businesses with time to make supply chain adjustments while giving China a chance to negotiate a trade deal in good faith, Ackman said.
“If China does not cooperate and negotiate a deal that makes sense for our country, President Trump can bring the hammer down in 90 days,” Ackman wrote.
Forecasters have a bleak outlook on the U.S. economy because of President Donald Trump’s escalating trade war − and they see the odds of a recession as a tossup. The experts predict the economy will nearly stall in 2025, growing 0.8%, down from their projection of 1.7% just last month, according to the average estimate of 46 economists surveyed by Wolters Kluwer Blue Chip Economic Indicators on April 4 and April 7. They estimated there’s a 47% chance of recession, up from 25% in February.
The poll was conducted after Trump unveiled his reciprocal tariffs on dozens of countries on April 2 but before he announced a 90-day pause on duties as high as 50% on all nations other than China on April 9 and exemptions for many electronics products a few days later.
A separate survey of 31 experts this week – 21 of whom responded the day Trump announced the 90-day pause – reveals a similarly dour view, according to the poll by the National Association of Business Economics. They expect the economy to grow just 0.7% this year. Read more here.
− Paul Davidson