For the past couple of weeks, 45th (and 47th) U.S. President Donald J. Trump has issued tariffs on all imports from countries outside of the states. Previously, Trump had placed tariffs on cars and auto-parts.
This Sunday, however, Trump announced that he would be placing new tariffs on the computer chips used to run smartphones, laptops, and the like (basically, whatever device you’re using to read this article).
Ironically, this was only two days after a multitude of electronics and products were given exceptions from the very same tariffs placed on imported goods arriving from China. Although, Trump announced this Sunday that these exemptions were really only a break, as the government continues to place targeted import taxes on a worryingly-increasing amount of technologies.
The Trump Administration is believed to be taking a step towards enacting these incoming tariffs starting as soon as next week.
On ABC’s “This Week,” Commerce Secretary Howard Lutnik mentioned on the same Sunday that Trump may possibly announce even more tariffs in the upcoming month or two, which would target not only semiconductors, but also pharmaceutical goods.
CNN, in an interview with Kevin Hassett, Director of the White House, was told that this was “always the case,” and that these high-tech imports would be subject to tariffs anyway, different from the other and more broad tariffs placed on the other countries. Hassett added that “Semiconductors are a key component in a lot of defense equipment.”
Not all semiconductors are subject to this tariff, as some have been excluded. However, the chaotic nature of America’s current trade situation has boggled & overwhelmed companies that ordinarily rely on trade with China to continue running.
However, as long as China remains in the picture, there are no signs of the trade war coming to a halt in the upcoming days ahead. With prices constantly on the rise, investors and business owners are currently looking at what is now a chaotic mess of uncertainty in the industry. Dan Ives is an analyst for Wedbush Securities. Ives states that the current trade conflict is resulting in a dizzying and chaotic disorder for “companies trying to plan their supply chain, inventory, and demand.”
As a whole, tariffs are going to increase the prices of existing products. Now, prices for electronic devices, including smartphones, may continue to rise, as they get more and more expensive to not only manufacture, but even import to the U.S. In fact, the mighty technological company of the country, Apple, has not been served well by these tariffs, as in what was just the opening day of Trump’s new tariffs, the company already lost over $770 billion in market capitalization.
