Trump Announces New Semiconductor Tariffs, Tech Products No Longer Safe

U.S. President Donald Trump has once again shocked global markets by announcing a new round of tariffs targeting semiconductors, set to take effect next week. This move signals a reversal from earlier promises to exempt consumer electronics—such as smartphones and computers—from reciprocal tariffs on Chinese goods.

"We want to simplify things for many companies because we aim to produce chips and semiconductors domestically," Trump told reporters aboard Air Force One en route to Washington, as reported by Reuters on Monday (April 14, 2025).

Trump stressed the need for flexibility in policy implementation. "No one should be too rigid," he added.

Citing a report from cnbcindonesia.com, Earlier that same day, Trump revealed on his social media account that his administration had launched an investigation into the semiconductor and electronics supply chain, referring to it as part of a "National Security Tariff Investigation."

"Tariffs will be imposed very soon," he stated, adding that he plans to make the announcement next week.

White House Walks Back Exemptions, Electronics Now Targeted

Just days before, the White House had announced exemptions for high-tech consumer goods, sparking hopes that smartphones and laptops might avoid being drawn into the escalating U.S.-China trade conflict. However, Commerce Secretary Howard Lutnick clarified on Sunday that essential Chinese tech imports, including semiconductors and pharmaceuticals, would face separate tariffs.

Speaking on ABC’s “This Week,” Lutnick said the U.S. would impose “special tariffs” on electronics—including phones and computers—independent of the reciprocal tariffs that had surged to 125% the previous week.

“They were exempt from the reciprocal tariffs, but they’re included in the semiconductor tariff plan, which may be implemented within the next one or two months,” Lutnick explained.

In retaliation, Beijing raised tariffs on American goods to 125% on Friday, responding to Trump’s earlier hike to 145% on Chinese imports.

China’s Ministry of Commerce fired back with a pointed statement: “The bell tied to the tiger’s neck must be untied by the one who tied it.”

Policy Whiplash Sparks Criticism of Trump Administration

The inconsistent messaging from the White House has sparked criticism from economists and lawmakers alike. Sven Henrich, founder and lead market strategist at NorthmanTrader, took to X with a sharp jab.

“The biggest rally of the year will happen the day Lutnick is fired,” he wrote.

Meanwhile, Senator Elizabeth Warren criticized Trump’s erratic tariff revisions, echoing economists’ warnings that such moves risk economic stagnation and rising inflation.

“There’s no tariff policy—just chaos and corruption,” Warren declared on “This Week.”