The United States (US) on Monday (14 April) signalled a potential broadening of its trade offensive, launching formal investigations into pharmaceutical and semiconductor imports under the guise of national security, as Chinese leader Xi Jinping cautioned that such a trade war could have "no winner".
The announcement, made by the US Commerce Secretary, followed weeks of speculation and came as Treasury Secretary Scott Bessent spoke optimistically of progress in bilateral trade talks—offering scant detail, however, on any concrete outcomes, reports AFP.
Talks have reportedly begun with Vietnam, with negotiations scheduled with Japan on Wednesday and South Korea the following week.
On China, Bessent remained vague, stating merely that “there’s a big deal to be done”.
Despite the ominous tone of new tariff threats, global markets responded positively to signals of possible exemptions for key tech sectors. Wall Street rallied, and Asian and European markets also saw gains, buoyed by hopes of a more conciliatory approach from the Trump administration.
Nevertheless, Trump doubled down on the rationale behind the tariffs, insisting they would bring critical manufacturing jobs back to American soil. White House spokesman Kush Desai reaffirmed the administration’s commitment to acting swiftly, saying they were operating on “Trump Time”.
Tariff skirmishes have already seen US levies on Chinese goods soar to 145%, with Beijing retaliating with duties of up to 125%. Late last week, Washington introduced exemptions for a range of high-end electronics, including smartphones, semiconductors, and computers, only for Trump to suggest on Sunday that such relief would be temporary.
South Korea, home to tech giant Samsung, responded swiftly to the developments, unveiling plans on Tuesday to invest an additional $4.9 billion in its semiconductor industry. The country's finance ministry cited "growing uncertainty" as domestic firms sought reassurance.
While Trump on Monday again hinted at flexibility—stating he was considering relief for car companies affected by his 25% tariff on auto imports—he maintained that tariffs were a means to “help, not hurt”.
Speaking in Vietnam at the start of a Southeast Asian tour, President Xi struck a stern note, declaring that “protectionism will lead nowhere” and reiterating that trade wars result in no victors.
The US administration’s aggressive trade stance, first unveiled in early April, has raised concerns of a global economic slowdown. Markets have seen the dollar weaken, while investors have turned away from US Treasury bonds, typically considered safe-haven assets.
The temporary exemptions granted last week may provide short-lived relief for American tech firms such as Apple and Nvidia, which manufacture products in China. Yet Trump has pledged to announce new semiconductor tariffs “over the next week”, with Commerce Secretary Howard Lutnick estimating implementation within “a month or two”.
Meanwhile, the White House maintains that a trade agreement with China remains possible, though it has implied that Beijing must make the first move. European Union trade commissioner Maros Sefcovic, after meetings in Washington, said the EU was open to a fair deal and proposed a “zero-for-zero” tariff approach on industrial goods—cautioning that such a framework would demand “significant joint effort”.
Dozens of countries are now reportedly engaging in trade talks with Washington, hoping to reach agreements before the current 90-day tariff reprieve expires. Japanese minister Ryosei Akazawa is expected in Washington later this week, with Tokyo’s automakers among the hardest hit by the US auto tariff.
