Commerce Secretary Howard Lutnick said Sunday that President Donald Trump’s exemptions on items such as computer and cellphone components made in China may be only temporary.
"Those products are going to be part of the semiconductor sectoral tariffs, which are coming," Lutnick said on ABC's "This Week."
Lutnick’s remarks added to the uncertainty surrounding the administration’s tariff policy. Late Friday, a Customs and Border Protection memo stated that smartphones, computers and certain semiconductor chips would be exempt from tariffs imposed on Chinese-made goods.
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Since announcing a 34% tariff on Chinese imports on April 2, President Trump has imposed additional tariffs in response to Chinese retaliation — raising the effective rate to 145%. The president has defended the move, arguing that it will ultimately strengthen the U.S. economy and that China remains interested in negotiating a deal.
Lutnick echoed that sentiment on Sunday.
"We all expect that the president of the United States and President Xi of China will work this out," he said.
Economists warn that the cost of tariffs is likely to be passed on to consumers. While President Trump has suggested there may be a transition period, he maintains that Americans will benefit from the policy in the long run.
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