#USElectronicsTariffs The US electronic tariff update is quite dynamic, with recent developments surrounding President Donald Trump's tariff policies. Here's what's happening¹ ²:
- *Temporary Exemption*: The US government has exempted certain electronic goods, such as smartphones and laptops from China, from the 145% reciprocal tariffs. However, this exemption is expected to be short-lived.
- *Semiconductor Tariffs*: US Commerce Secretary Howard Lutnick announced that electronics would eventually fall under a separate round of tariffs on semiconductors, likely within a month or two. This means tariffs on iPhones and other electronics could return soon.
- *New Tariff Rates*: President Trump plans to reveal new tariff rates on imported semiconductors within the coming week. There might be flexibility for certain companies in the sector.
- *Trade Fight*: Trump emphasized that no country, including China, will be "off the hook" for unfair trade balances and non-monetary tariff barriers. The trade fight with China is far from over, with potential implications for businesses and the stock market.
*Impact on Businesses*
- *Uncertainty*: The uncertainty surrounding tariffs has already led to business uncertainty, with 20% of US middle-market firms surveyed by PYMNTS Intelligence planning to raise prices in response to tariffs.
- *Delays and Client Turnover*: 33% of businesses faced delays in getting products to market, and 31% saw client turnover due to uncertain business outlooks.
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