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Trump Unleashes Dramatic Reversal That Could Hit Americans Hard

April 14, 2025
by The Times Of America

Electronics Industry on Edge as Trump Confirms No Tariff Exemptions From China Trade War

The technology sector faced new uncertainty this week as President Donald Trump emphatically clarified that electronics will not escape his aggressive tariff strategy targeting China, contradicting earlier reports of potential exemptions.

“NOBODY is getting ‘off the hook’ for the unfair Trade Balances, and Non Monetary Tariff Barriers, that other Countries have used against us, especially not China, which, by far, treats us the worst!” Trump declared Sunday on Truth Social, signaling his administration’s unwavering stance on trade policy.

The president’s statement followed confusion stemming from a Friday notice that appeared to exempt gadgets like smartphones and laptops from both his China-specific 125 percent tariffs and broader 10 percent global levies, TTOA previously reported.

Commerce Secretary Howard Lutnick quickly moved to correct this interpretation during a Sunday appearance on ABC News.

“Well remember those products are going to be part of the semiconductor sectoral tariffs which are coming,” Lutnick explained to host Jon Karl. 

He emphasized that electronics would face a “special focused type of tariff” designed specifically to encourage reshoring of production to America, likely to be implemented “in a month or two.”

The clarification reveals a more nuanced approach to the electronics industry, with the administration planning industry-specific tariffs rather than blanket exemptions. 

“They’re going to have a special focused type of tariff to make sure that those products get reshored,” Lutnick said, adding: “This is not like, a permanent sort of exemption.”

Trump specifically highlighted his administration’s focus on reshaping the technology supply chain in his Sunday message: “We are taking a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN in the upcoming National Security Tariff Investigations.”

The stakes are particularly high for American tech giant Apple, which relies heavily on Chinese manufacturing. 

The Daily Mail reported that data from Evercore ISI indicates that over 80 percent of all Apple products are made in China, including approximately 80 percent of iPads and more than half of all Mac computers. Following Trump’s initial tariff announcement, Apple saw a staggering $640 billion erased from its market value.

Industry analysts warn that relocating production to American soil presents formidable challenges. Bank of America Securities estimates that producing the iPhone 16 Pro Max domestically could push its price from $1,199 to approximately $2,300, while Wedbush Securities suggests costs could reach as high as $3,500 per unit.

The difficulties extend beyond simple cost calculations. Higher labor expenses in the U.S.—approximately $200 per unit compared to $40 in China—represents just one obstacle. 

Apple CEO Tim Cook has previously highlighted America’s significant shortage of qualified tooling engineers compared to China’s extensive talent pool in manufacturing.

These announcements come amid an intensifying trade conflict, with China recently raising its levies on American imports to 125 percent in response to Trump effectively increasing tariffs on Chinese goods to 145 percent.

Trump characterized Beijing as a hostile trading partner that will “do everything within its power to disrespect the American People,” framing his aggressive trade stance as necessary to protect American economic interests.

The Daily Mail highlighted that in anticipation of possible supply chain disruptions, Apple has already taken defensive measures, including chartering flights to expedite shipment of approximately 1.5 million iPhones from India to the United States.

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