Trump smartphone tariff measures ‘coming soon,’ Lutnick says
Commerce Secretary Howard Lutnick indicated that the tariffs on smartphones and various electronics are expected to be implemented “soon.”
WASHINGTON ― President Donald Trump stated that he is contemplating giving temporary exemptions from his 25% tariffs on the auto industry, allowing car manufacturers more time to shift their production to the U.S.
Trump’s comments made on Monday from the Oval Office followed a decision last week by his administration to exclude smartphones, computers, and other electronics from the steep reciprocal tariffs, which his economic advisors say is a temporary measure.
“I’m considering options to assist some of the car companies that are transitioning to parts manufactured in Canada, Mexico, and other countries,” Trump told reporters. “They require a bit more time to start production here.”
An exemption on certain auto tariffs—encompassing 25% tariffs on all foreign cars and light trucks, along with some auto parts—could be significantly beneficial for manufacturers since the industry is currently facing tariffs that could drive up car prices for American consumers. Following Trump’s declarations, stock shares of the three largest U.S. automakers—Ford, General Motors, and Stellantis—experienced noticeable gains.
The tariffs on foreign automobiles commenced on April 3. The levies on foreign auto parts, including transmissions and engines, will take effect no later than May 3.
Vehicles protected under the Canada-United States-Mexico Agreement—a trade deal brokered by Trump during his first term—are exempt from the complete 25% tariff. Instead, tariffs are imposed only on foreign parts within vehicles imported from Canada and Mexico.
Trump has maintained that these aggressive tariffs are instrumental for revitalizing U.S. manufacturing, particularly in the automotive sector.
“We have countless cars from their manufacturers—BMW, Volkswagen, Mercedes-Benz, and numerous others,” Trump remarked, citing German automobiles as an illustration. “There are no Chevrolets available in Munich, I assure you.”
On April 11, the Trump administration relieved many tech products from a 125% tariff on imports from China and a 10% universal reciprocal tariff on imports from other nations. This reprieve benefits companies like Apple Inc., which largely produces its devices in China, including its popular iPhone, along with other tech behemoths such as Microsoft and Samsung Electronics.
Nonetheless, the exempted imports still face a 20% tariff imposed by Trump on China to compel action against the manufacturing of fentanyl. Trump’s senior economic advisors indicated that these exemptions are temporary and plans are in place to target these products for forthcoming tariffs on semiconductors that Trump has pledged.
It remains uncertain whether Trump is considering a short-term tariff exemption on auto parts, foreign automobiles, or both. This action would continue the erratic approach to implementing import levies—creating uncertainty that has unsettled global markets.
“I consider myself quite adaptable. I rarely change my views, but I remain flexible,” Trump asserted. “You must be adaptable. Sometimes you can’t just confront an obstacle; instead, you may need to find ways around, under, or over it.”
In defending Trump’s tariff strategies, the White House highlighted Nvidia’s announcement on April 14 regarding its decision to construct its first U.S. factories to produce AI supercomputers, committing to invest $500 billion in AI infrastructure.
During intensifying U.S.-China trade tensions, China’s President Xi Jinping and Vietnam’s top official, To Lam, forged numerous cooperation agreements on April 14 to bolster trade relations between their two communist-led nations.
“I bear no resentment toward China, nor do I toward Vietnam. I appreciate their collaboration today. Isn’t that fantastic? It’s a lovely partnership,” Trump remarked on April 14, adding that they are “working together to undermine the United States of America.”
Reach Joey Garrison on X @joeygarrison.
