Trump's Tariff Twist on Smartphones and Electronics
US President Donald Trump has announced that Chinese-made smartphones and electronics won't be exempt from tariffs, contradicting a recent US customs notice. Instead, they'll be subject to a "semiconductor tariff". Trump stated that these products are moving to a different tariff "bucket" and plans to reveal more details on semiconductor duties.
Impact on Trade and Economy
- *Tariff Rates*: Trump's tariffs on Chinese imports have escalated to 145%, while China has imposed levies of up to 125% on US goods.
- *Market Reaction*: European stock markets initially bounced back after the exemption announcement but may be affected by the new semiconductor tariff plans.
- *Global Trade*: The ongoing trade tensions between the US and China have raised fears of decreased global trade, impacting jobs and individual economies.
Reactions and Consequences
- *China's Response*: China has called on Trump to "completely cancel" his tariffs regime and "return to the right path of mutual respect".
- *Sony's Price Hike*: Sony has increased the price of its PlayStation 5 console in Europe, Australia, and New Zealand, citing a "challenging economic environment" and fluctuating exchange rates.
- *US-China Relations*: The possibility of a thaw in the two rivals' protectionist posture seems uncertain, with no plans for Trump to speak with Chinese counterpart.