Computer Chips Are Exempt from Duties—For Now
An Explosive Move: President Donald Trump has unleashed what experts describe as a “devastating blow” to global trade. On Wednesday, he announced radical tariffs of at least 10% on all imports into the U.S., with even higher rates for partners like the European Union and economic rivals like China. Analysts warn this will trigger retaliatory measures, fueling a dangerous trade war with no clear winners and deflationary effects.
This drastic escalation in Trump’s trade policy could raise prices on nearly all products Americans buy from abroad. Furthermore, economists predict these tariffs could trigger recessions in multiple economies within the next year. “He just dropped a bomb on the global trading system,” said Ken Rogoff, former chief economist at the IMF, in an interview with the BBC.
Markets reacted sharply, with tech stocks hit particularly hard. Apple led the losses among major companies, plunging nearly 9%—its worst day since 2020—due to its reliance on overseas manufacturing.
The Nasdaq Composite fell around 6%, its worst single-day performance in over five years, bringing its year-to-date decline to 14%. Other tech giants also suffered: Meta and Amazon each dropped roughly 9%, Nvidia fell 8%, and Tesla slid over 5%. Microsoft and Alphabet (Google) declined 2% and 4%, respectively.
Although computer chips, copper, and certain medications are temporarily exempt (with a special semiconductor tax planned), chipmakers still saw steep losses. Shares of Marvell, Broadcom, and Lam Research dropped nearly 10%. Micron fared even worse, plummeting 16%, while AMD tumbled over 9%. PC manufacturers Dell and HP were among the hardest hit, with their stocks crashing more than 15%.
Under Trump’s plan, a baseline 10% tariff will apply to all imports starting April 5. However, around 60 countries—deemed the “worst offenders” in trade by the White House—will face steeper penalties just days later, on April 9.
These nations will face “reciprocal tariffs,” matching the higher duties they impose on U.S. exports. For example, the EU’s 20% tariffs will be met with a new 20% U.S. tax on European goods. China, already battered by Trump’s previous trade measures, now faces a total tariff rate of 54%.
While Canada and Mexico escaped this round, nearly all other U.S. trade partners were targeted, including long-standing allies like the UK (10%) and Japan (24%). Some of the highest rates apply to Vietnam (46%) and Cambodia (49%), countries that had recently seen an investment boom as companies shifted production from China to avoid earlier tariffs.
Questions remain over whether these measures will actually create more U.S. factory jobs, as Trump claims.
Additionally, Apple and other tech giants diversifying away from China could still be hit by high tariffs, regardless of where they manufacture goods sold in the U.S.
Economists had previously warned that tariffs would drive up prices on electronics like laptops, smartphones, and TVs—most of which are primarily made in China.
Retailers like Amazon, which rely on ultra-cheap, duty-free small shipments, were also hit hard. Trump has moved to scrap a long-standing exemption allowing tax-free imports of goods valued under $800, a change that could take effect in May.
As expected, both China and the EU have threatened retaliation. However, Treasury Secretary Scott Bessent urged restraint, arguing these tariffs represent the maximum level other nations should simply accept.
By: Nestor Casillo, ForAllTechNews Director
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