US Secretary of Commerce Howard Lutnick warned that smartphones and other consumer electronics imported into America from China will always face prices, having a blow to the hope of a stay for large technological companies such as Apple, Nvidia and Microsoft.
Donald Trump’s administration this weekend has excluded phones, chip manufacturing equipment and some computers from “reciprocal” rates that were a significant boost for technological groups whose actions plunged after the president triggered a world trade war on the “Liberation Day”.
But speaking on ABC This week Lutnick said on Sunday that these products would be re-examined as part of a government survey on semiconductors, which are faced with a series of distinct rates.
“What he does is that he says they are exempt from reciprocal prices,” said Lunick, referring to Trump. “But they are included in the prices of semiconductors, which are probably arriving in a month or two.”
When asked to clarify if the iPhones prices could “come back in about a month,” Lunick replied: “Correct. It’s true … We need our medication and we need semiconductors and our electronics to be built in America. ”
Lutnick’s comments will further arouse uncertainty of Wall Street on Monday on the impact of Trump’s pricing deployment, which was marked by a series of reversals which caused a mountain of roller coaster mountains and a sale last week on the 29 toning American cash market.
Ray Dalio, the billionaire founder of the BRIDGEWATER HIDDERSEDERS FUNDULATIVE company, warned on Sunday that Trump’s prices were “very disruptive”.
“I think at the moment, we are at a decision point and very close to a recession,” said Dalio, speaking on NBC on Sunday. “And I worry about something worse than a recession if it is not well managed.”
Apple, NVIDIA and other American technological companies exposed to potential rates have not immediately responded to requests for comments. The Consumer Technology Association, which represents many of the biggest electronic brands, refused to comment.
Any softening of the prices on Chinese imports would be a great victory for Microsoft and Apple, which makes around 80% of its iPhones in China, according to the analyst’s estimates.
On Sunday, Beijing urged the White House to cancel the full extent of “reciprocal” prices, arguing that “there are no winners in a trade war, and there is no way to go out for protectionism”.
The Chinese Ministry of Commerce said it was a “small step for the United States to correct its unilateral unilateral prices”, but that it “evaluated the relevant impact”.
Trump administration said Apple can build iphones in the United States as part of its efforts to revive American manufacturing, according to a move, experts are not realistic given the links of the company’s in-depth supply chain with China and Southeast Asia.
In the immediate term, Apple has rather pivoted in its second iPhone manufacturing base, India, where it seems likely to cope with lower rates in China.
During last week, Trump increased his additional rates on China to 145%, even though he offered a 90 -day break on his “reciprocal” samples from other countries. The president has maintained a 10% rate on most American business partners.
The White House sales advisor Peter Navarro said on Sunday that the United States would speak to its business partners. “We have 90 offers in 90 days possibly pending here, and it was up to the course,” he said.
Since entering the White House in January, Trump has threatened multiple American trade partners with devastating prices which he finally lowered, suspended or completely eliminated.
“The mass confusion created by this flow of new constants of the White House is vertiginous for industry and investors and the creation of massive uncertainty and chaos for companies trying to plan their supply chain, inventory and their demand,” said Daniel Ives, World Technological Research Manager at Wedbush Securities.
Trump has triggered steep sectoral prices on cars and automotive parts imported into the United States and on all American steel and aluminum imports. US officials have indicated that other prices would be applied to chips, pharmaceuticals, copper and wood.
The United States has also collected 25% prices on goods imported from Canada and Mexico which does not comply with the Trump 2020 USMCA free trade agreement.
The exemptions offered on Friday consumer technology goods only apply to reciprocal rates. All imports from China, including exempt goods from reciprocal samples, are still subject to an additional 20% price under Trump.
The healing fund manager Bill Ackman, who warned a “nuclear winter” a week ago if the reciprocal prices were not interrupted for 90 days, this weekend, the president urged the recovery to all the products of China.
“By leaving a rate of 145% on China in recent days, he sent a message to China about the consequences to China to retaliate rather than coming to the negotiation table,” he wrote on X.
“If China does not cooperate and does not negotiate an agreement that makes sense to our country, President Trump can shoot the hammer in 90 days.”
