Lutnick: Smartphone tariff exemptions are temporary
The Trump administration's move to exempt smartphones, computers and other electronics from sweeping reciprocal tariffs is only a temporary measure, Commerce Secretary Howard Lutnick said Sunday, indicating those devices would be covered by upcoming sector-based tariffs.
"This is not like a permanent sort of exemption. [Trump's] just clarifying that these are not available to be negotiated away by countries. These are things that are national security, that we need to be made in America," Lutnick told ABC's "This Week."
Customs and Border Protection, which handles the collection of tariffs, posted a notice late Friday that certain electronics would be exempted from “reciprocal” tariffs imposed on other nations, including China.
But Lutnick told ABC News that the excluded devices, such as smartphones, computers, routers and other electronics, will likely be covered under tariffs President Trump is set to impose on semiconductors.
"So, what he's doing is he's saying they're exempt from the reciprocal tariffs but they're included in the semiconductor tariffs, which are coming in probably a month or two," Lutnick said. "So, these are coming soon. You shouldn't think this is really outside of it. Really think of it as being included in the semiconductor space."
Lutnick argued the tariffs on semiconductors would be part of an effort to bring manufacturing of those electronics back to the United States.
The initial exemptions appeared to be a break for consumers, who were facing the possibility of paying higher prices on electronics because of steep tariffs imposed on China. It was also an apparent win for companies like Apple, which manufactures many of its products in China.
The decision to exempt certain products only to add tariffs on them later could also add to some confusion around the Trump administration's rollout of its tariff policy.
Trump has in recent months announced tariffs on Canada and Mexico only to delay them for a month. He then imposed tariffs on Canada and Mexico, but then announced many products covered under a 2020 trade agreement would be exempt.
The president also announced a 10 percent baseline tariff on all imports, as well as higher "reciprocal" tariffs on dozens of countries, including Japan, South Korea, China, India, Thailand and the European Union. But Trump has since announced all countries other than China will have their "reciprocal" tariffs reduced to 10 percent for 90 days to allow for negotiations.