Lutnick signals Trump planning new tariffs on tech despite recent exemptions

US Commerce Secretary Howard Lutnick revealed on Sunday that newly exempted electronics, including smartphones and computers, may soon be subject to a separate set of tariffs, Reuters reported. 

Speaking on ABC’s This Week, Lutnick indicated that new duties could be imposed within the next two months, also targeting semiconductors and pharmaceuticals.

These remarks mark a new development in President Donald Trump’s ongoing tariff strategy, which has unsettled global trade and triggered intense volatility in financial markets since its rollout on April 2 — what Trump called “Liberation Day.”

On Friday, the Trump administration granted exclusions for certain electronics from the steep reciprocal tariffs on Chinese imports. The move was seen as a reprieve for companies like Apple and Dell, which depend heavily on Chinese suppliers. However, Lutnick’s comments signaled that the exemption may be short-lived.

Lutnick said Trump plans to enact “a special focus-type of tariff” on select electronics, distinct from the reciprocal tariffs that now stand at 125%. “He’s saying they’re exempt from the reciprocal tariffs, but they’re included in the semiconductor tariffs, which are coming in probably a month or two,” Lutnick explained. “These are things that are national security, that we need to be made in America.”

The uncertainty stemming from the administration’s shifting policy has led to the wildest market swings since the COVID-19 pandemic. The S&P 500 index is down more than 10% since Trump took office in January.

Lutnick’s comments go further than the White House’s Saturday announcement that the administration would launch a national security investigation into semiconductors, potentially leading to more tariffs. China, which raised tariffs on US goods to 125% on Friday, said it was evaluating the implications of the tech exemptions.

“The bell on a tiger’s neck can only be untied by the person who tied it,” China’s Ministry of Commerce said.

Investor Bill Ackman, who had supported Trump, urged him to pause the reciprocal tariffs on China for three months. Ackman said that trimming tariffs to 10% temporarily could incentivise supply chain shifts without the same disruption. “He would achieve the same objective… without the disruption and risk,” he wrote on X.

Sven Henrich, founder of NorthmanTrader, blasted the administration’s inconsistency. “Sentiment check: The biggest rally of the year would come on the day Lutnick gets fired,” Henrich posted. “I suggest the administration figures out who controls the message… as it changes every day. US business can’t plan or invest with the constant back and forth.”

Senator Elizabeth Warren also condemned the tariff changes. “There is no tariff policy—only chaos and corruption,” she said on This Week.

The US Customs and Border Protection’s notice published Friday listed 20 categories, such as laptops, memory chips, and flat panel displays, as exempt from the reciprocal tariffs. However, Trump’s earlier 20% tariff on all Chinese imports linked to the fentanyl crisis remains.

White House adviser Peter Navarro confirmed ongoing talks with allies but excluded China, while Trade Representative Jamieson Greer said no Trump-Xi meeting was planned. “My goal is to get meaningful deals before 90 days,” Greer said.

Ray Dalio, founder of Bridgewater Associates, warned on Meet the Press, “Right now we are at a decision-making point and very close to a recession… I’m worried about something worse if this isn’t handled well.”