US President Donald Trump has dismissed reports that Chinese-made smartphones, computers and other electronic devices have been exempted from punitive tariffs, insisting instead that the products are merely being reclassified into a different tariff category.
On Saturday, a notice from US customs suggested smartphones and other electronics would be spared from the 125% tariff on Chinese imports, reports BBC.
However, Trump swiftly contradicted the development via social media, branding such claims "false" and asserting that the goods were not exempt, but rather "just moving to a different Tariff 'bucket'."
The move sparked a surge in European stock markets on Monday, recovering from Friday’s turbulence when the initial exemption notice was released. Despite the bounce, the broader outlook remains clouded by uncertainty.
US officials clarified on Sunday that although certain electronics might escape the original levies, they would still fall under a forthcoming "semiconductor tariff", with further details expected to be disclosed by Trump this week.
Commerce Secretary Howard Lutnick confirmed that the new duty would complement existing global tariffs imposed earlier this month—measures that were briefly paused for a 90-day reprieve.
“We need our medicines, semiconductors and electronics to be built in America,” Lutnick stated, reinforcing the administration’s protectionist stance.
The tariff reshuffle comes as everyday electronics—from smartphones to laptops—remain critically dependent on semiconductors, the microscopic technology underpinning modern digital infrastructure. Trump announced a broader investigation into the entire electronics supply chain as part of upcoming national security tariff inquiries.
China’s commerce ministry described the latest exemptions as a “small step”, adding that it was still assessing their impact. However, Beijing renewed its call for Washington to “completely cancel” the tariff regime and return to “mutual respect”.
The escalating trade war has seen tit-for-tat tariffs climb sharply. Earlier this month, Trump imposed a 54% levy on Chinese imports, later raising it to the current 145%. China responded with retaliatory duties of 34%, which have since increased to 125%.
While the White House maintains that tariffs are a strategic lever to extract more favourable trade terms, critics argue the policy has introduced volatility into global markets. Trump's repeated interventions have triggered significant stock fluctuations and sparked concerns over the long-term impact on global trade and employment.
Sony, citing a “challenging economic environment”, announced a 10% increase in the price of its flagship PlayStation 5 console across Europe, Australia and New Zealand. The company did not raise prices in the United States.
Despite speculation of backchannel diplomacy, US Trade Representative Jamieson Greer confirmed on Sunday that no discussions were planned between Trump and Chinese President Xi Jinping.
Trump, speaking from Miami on Saturday, pledged to provide further clarity on the exemptions and the future of semiconductor tariffs early this week.
