President Donald Trump announced that he would be setting tariffs on imported semiconductors in the coming week, with some flexibility for certain companies in the sector. This decision is a shift from the exclusion of smartphones and computers from reciprocal tariffs on China, indicating a reset in trade policies. A national security trade probe into the semiconductor sector was also announced. The exclusion of tech products from steep tariffs on Chinese imports on Friday led to hope that consumer goods would remain affordable, but Commerce Secretary Howard Lutnick clarified that new duties would be imposed on critical technology products from China, including semiconductors, within the next two months. These duties would be separate from reciprocal tariffs. The back-and-forth on tariffs has caused market volatility, and billionaire investor Bill Ackman called for a three-month pause on Chinese tariffs to avoid disruption. Critics, including U.S. Senator Elizabeth Warren, have slammed the lack of a coherent tariff policy. Trade adviser Peter Navarro extended an invitation to China for negotiations, but also criticized China’s involvement in the fentanyl supply chain. There are hopes for non-Chinese trade deals in the near future. Concerns about the tariffs potentially leading to a recession were expressed by billionaire Ray Dalio. Overall, the tariff issue remains a point of uncertainty and volatility in international trade.
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