The Trump administration has confirmed that smartphones, laptops, and other devices currently exempt from tariffs imposed on April 9 will face new duties in “one or two months,” according to Commerce Secretary Howard Lutnick in an interview with ABC News.
Temporary Exemption, Not Permanent
Although a recent update to tariff policies temporarily excluded these products—including the additional 125% tax applied last week to goods manufactured in China—Lutnick clarified that this is not a permanent measure. These items will later be subject to a “special tariff” similar to those already imposed on industries like automotive and semiconductors.
The Goal: Incentivize Domestic Production
When asked whether the new tariffs would affect products like the iPhone—mostly assembled in China—Lutnick confirmed, stating that the purpose is to encourage manufacturing in the U.S.
ABC News host Jonathan Karl questioned whether this would lead to higher prices for American consumers, to which Lutnick responded:
“Not necessarily. The idea is that we can produce them here. For example, Panasonic, a Japanese company, built a battery plant in Kansas during the Trump administration and is now completing it.”
Possible Confusion Over Panasonic Project
Lutnick was likely referring to an electric vehicle battery plant that Panasonic began constructing in November 2022. Notably, the company received billions in incentives under the Biden-era Inflation Reduction Act, legislation that Trump has vowed to revisit, threatening to “rescind all unspent funds.”
Conclusion
The move reflects the Trump administration’s strategy of pressuring companies to relocate production to the U.S., though it could lead to trade tensions and potential short-term price increases.
By: Nestor Castillo, ForAllTechNews Director