Introduction Of Tech Tariff
The tech industry’s brief relief from U.S. tariffs may be short-lived, according to Commerce Secretary Howard Lutnick, who suggested that broader and more targeted trade measures are on the way.
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Last week, the Trump administration announced that consumer electronics like laptops and smartphones would be exempt from a sweeping round of tariffs introduced earlier this month. While President Trump paused some of those tariffs, a 10% baseline tariff remains in place, along with an additional 125% tariff specifically targeting Chinese goods. Tech Tariff
Although the initial news signaled a reprieve for tech manufacturers, it came with a caveat: the exemption may not apply to future rounds of more specific tariffs. Reports indicated that semiconductor components could be a key target — a point Lutnick made clear during a Sunday interview on ABC’s This Week. Tech Tariff
“These products are currently exempt from the reciprocal tariffs,” Lutnick said, “but they’ll be included in the upcoming semiconductor tariffs, which we expect to roll out in a month or two.”
Lutnick emphasized that semiconductors — along with chips and flat panel displays — are a strategic priority for the administration’s reshoring efforts. “We need to make these things in America,” he said. “This is about building manufacturing back up in the U.S.”
When asked whether these tariffs would translate to higher prices for consumers, Lutnick was dismissive. “I don’t think so,” he replied. “The idea is to bring manufacturing home.”
However, critics argue that the vision of large-scale electronics assembly returning to the U.S. — complete with “millions and millions of human beings screwing in little screws to make iPhones,” as one source put it — is unrealistic and economically infeasible.
President Trump later weighed in on the situation via his Truth Social platform, contradicting reports that suggested a full tariff exemption had been granted. “There was no Tariff ‘exception’ announced on Friday,” he wrote, noting that electronics made in China are still subject to a separate 20% tariff linked to fentanyl enforcement.
“These products are just moving to a different Tariff ‘bucket,’” Trump added, accusing the media of misreporting the facts. He also said that a broader investigation into the electronics supply chain — including semiconductors — will be part of upcoming national security tariff reviews.
