U.S. Commerce Secretary Howard Lutnick announced that recent tariff exemptions for electronics and pharmaceutical goods are only short-term. In a recent interview with ABC News, he confirmed that new tariffs will begin soon. “These exemptions are temporary,” Lutnick said. “Expect new tariffs within the next month or two.”
The U.S. is preparing to place new taxes on imported semiconductors and drug-related products. These goods mostly come from China and Southeast Asia. The new policy aims to push companies to make more tech and health items in the U.S.
Lutnick emphasized the need for domestic production. “We need chips, screens, and essential components made in the U.S.,” he stated. “It’s not sustainable to rely on Southeast Asia for everything we depend on daily.”
Electronics Get a Short Break
Last Friday, the Trump administration said it would delay new tariffs on certain electronics. These include smartphones, laptops, memory cards, and solar panels. The decision aims to prevent a sudden rise in prices for consumer goods.
U.S. Customs and Border Protection issued a notice about the delay. The exemption affects a planned 145% tariff on Chinese-made electronics. Without this pause, products like mobile phones and tablets would become much more expensive.
The delay helps companies like Apple in the short term. Apple still makes about 90% of its iPhones in China. Market analysts from Wedbush Securities believe this move gives tech firms time to adjust.
Consumers May Face Higher Prices Soon
Although the delay is helpful for now, consumers may see price hikes in the near future. If the U.S. ends the exemptions and adds tariffs, importers may pass those costs to buyers.
Many popular devices sold in the U.S. are not made locally. Smartphones, laptops, and tablets depend on global supply chains. Companies often rely on factories in China, Taiwan, and South Korea.
If tariffs increase, companies may raise prices or move their factories. Both choices come with added costs. The average U.S. buyer could pay more for the same tech.
Trump Promises Clarity on Tariffs Soon
Former President Donald Trump also commented on the trade plan. While speaking to reporters on Air Force One, he said more updates are coming. “We’ll be very specific on Monday,” he stated. “But the country is making a lot of money.”
Trump’s trade policies have often changed. He supports strong tariffs to protect U.S. businesses. However, many experts believe this strategy could also hurt American firms that rely on imports.
The goal of these tariffs is to reduce reliance on China and increase U.S. factory jobs. Yet, some argue it’s not easy to bring manufacturing back. Factories need time, labor, and large investments to build and run.
Industry Reacts to Tariff Uncertainty
Tech and drug companies are watching closely. Any changes in trade policy can affect their plans. If tariffs increase, these firms must find new suppliers or invest in U.S. plants.
Apple and other big tech companies may have to rethink their overseas production. Drug companies could face higher costs for key ingredients.
Several groups, including the U.S. Chamber of Commerce, warned about the risks. They argue that more tariffs may hurt jobs and growth.
Economist Sarah Linden from the American Trade Council said, “It takes years to shift supply chains. You can’t just snap your fingers and build a chip factory.”
New Tariffs May Target Semiconductors and Drugs
One of the main targets is the semiconductor industry. Chips are used in almost every device today, from phones to cars. The U.S. wants more chip plants built at home.
Some progress has been made. Companies like Intel and TSMC are building factories in Arizona. But it will take time before these plants produce chips.
The drug industry may also face new taxes. Many basic medicines and ingredients come from abroad. If tariffs rise, drug prices could also go up.
Global Trade Impact
This shift could affect trade with many countries. Nations like China, India, and Vietnam might lose business. U.S. allies may also see changes if they supply tech or drugs.
At the same time, the U.S. could build stronger ties with countries that want to move away from China. Trade experts believe that friendly nations might get better deals or tariff breaks.
The future of trade will depend on what the U.S. decides in the coming weeks. If exemptions end and tariffs rise, both businesses and shoppers could feel the impact.
For now, the electronics and drug markets have a short window to prepare. But time is running out. Everyone from CEOs to everyday consumers will be watching what happens next.