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Will Your Next Smartphone Cost More? Trump’s New Tariff Plan Targets China’s Tech Supply Chain

New Tension in US-China Trade War: Trump Targets Semiconductors, Markets React

Editor Ritam English by Editor Ritam English
Apr 14, 2025, 10:26 am IST
(PC- Getty Images)

(PC- Getty Images)

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KEY POINTS

  • Trump to impose tariffs on semiconductors, phones and computers next
  • Tech markets rally briefly after tariff relief
  • China hits back with 125% tariffs on US goods

A new round of trade tensions between the United States and China is grabbing global attention, especially as US President Donald Trump sets his sights on imported semiconductor chips and the electronics supply chain.

In a recent post on Truth Social, Trump made it clear that tariffs on imported semiconductor chips would begin next week. He also said that the current exemption for smartphones and computers, many of which are imported from China, is only temporary. This signals that more electronic items could soon be included in future tariffs, sparking concern across global markets and tech industries.

Trump stated, “We are taking a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN in the upcoming National Security Tariff Investigations.” He emphasized that the exclusion of electronic items like smartphones and computers from these tariffs is short-lived. These items, he added, will soon move into different tariff categories or “tariff buckets,” hinting at more duties to come.

Following this announcement, the White House confirmed that some electronic items imported from China have been temporarily excluded from the reciprocal tariffs introduced by Trump. This gave a short-term boost to global share markets, especially in Asia. Tech stocks in Japan, South Korea, and Australia showed a positive surge, and the Taiwan tech supply chain, along with China and Hong Kong markets, also experienced a rally after this brief relief.

However, this relief might not last long. US Commerce Secretary Howard Lutnick said in an interview with ABC News that while some critical technology products from China are exempt from current reciprocal tariffs, they will be included in a new set of tariffs focused on semiconductors. These new duties, he added, could come into effect in the next month or two.

China, on the other hand, has not remained silent. In response to the US increasing tariffs on Chinese imports by 145%, Beijing hit back by imposing tariffs of up to 125% on American goods. The Chinese Commerce Ministry issued a sharp statement, saying, “The bell on a tiger’s neck can only be untied by the person who tied it,” suggesting that only the US can fix what it has started.

This rising trade tension between the world’s two biggest economies has put the global electronics supply chain in a tight spot. Semiconductors, being the heart of almost every modern gadget- from smartphones to cars- are now at the center of this economic battle. Any disruption in this chain could have ripple effects across industries and countries.

Experts believe that if these tariffs are fully implemented, they could not only raise prices of electronic items in the US but also disrupt manufacturing and sales for companies across Asia and Europe who depend on smooth trade flow between China and America.

In contrast, while there’s a short-term relief for electronic markets, the long-term picture remains uncertain. As both countries harden their positions, the world watches closely, because in a globalized tech economy, a tariff war between the US and China affects everyone.

ALSO READ: “Is India Replacing China as Apple’s New Factory? The $22 Billion iPhone Shift Says So”

Source: Tariff, US tariff, US china Tariffs, US China
Tags: US TariffTariffUS China Tariff
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