According to the U.S. Customs and Border Protection announcement published on Friday evening Washington time, electronics imported into the United States from China will be exempt from president Donald Trump's “reciprocal tariffs”.
“Many popular, high-tech products, applicable to the American consumer, will not be subject to duties, which will prevent consumers from expanding the prices of consumer goods.“
Products were withdrawn from the list, on which Trump imposed duties of 145% only on Wednesday. Among these products were smartphones, computers, semiconductor components, memory cards, solar panels, LCD screens. Moreover, semi-conductors were besides excluded from the basic customs duties of 10%.
The exemption does not apply to 20% of the work imposed on Chinese goods “for China's function in fentanyl trade”.
The work exemption is undoubtedly linked to the force of technological giants who produce their equipment in China. According to Wedbush Securities estimates, around 90% of Apple's production and assembly are taking place in China.
"Big technology companies specified as Apple, Nvidia, Microsoft and the wider technology manufacture can breathe relief this weekend until Monday," says a message by Wedbush Securities.
Counterpoint Research, a company monitoring global smartphone delivery, estimated that Apple has up to six weeks of stock in the United States. erstwhile this stock runs out, the prices of this American company are expected to increase.
On Saturday, White home press secretary Karoline Leavitt reported that “President Trump made it clear that America cannot trust on China to produce critical technologies specified as semiconductors, chips, smartphones and laptops. Therefore, the president provided billions of US investments from the world's largest technology companies, including Apple, TSMC and Nvidia. At the request of the President, these companies effort to decision their production to land in the United States as shortly as possible."
Economists inform that customs costs can yet be passed on to consumers. specified fear has caused consumers' moods to fall to a evidence low.
Nintendo reported on 4 April that it would postpone the pre-sale date of the control 2 game console in the US to ‘assess the possible impact of duties and changing marketplace conditions’. Initially valued at US$450, control 2 due to customs duties costs around US$600. specified an increase in price will definitely affect American purchasing decisions.
Trump's administration says they will bring more jobs in production in the United States and reverse the negative trend for decades. However, it is clear that, in the face of specified an unpredictable situation concerning duties, subsidies, relations with 3rd countries, companies will hold decisions on investment in production facilities in the USA.
It is hard to fund any business plan on the basis of information specified as the 1 provided by Karoline Leavitt that: "The president declared that cars, steel, pharmaceuticals, chips and another circumstantial materials would be subject to circumstantial tariffs in order to guarantee fair and effective application of tariffs".
A typical of the U.S. administration, in turn, announced that Donald Trump Trump would shortly order a survey (known as a survey of section 232) of the impact of semiconductor imports on national security.
During the Tuesday gathering of the Republican National legislature Committee, Donald Trump criticized Biden's decision to grant the TSMC a $6.6 billion grant for semiconductor production in Phoenix under the CHIPS and discipline Act of 2022. Trump stated there that he did not give TSMC any money and told the company “if you don’t build your mill here, you will pay a large taxation – 25, possibly 50, possibly 75, possibly 100%”.
Leszek B. Glass
Email: [email protected]
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