Commerce Secretary Howard Lutnick announced that tariffs on smartphones and other electronics would be implemented soon. President Trump is considering temporary exemptions from the 25% tariffs on the auto industry to allow car companies more time to transition to manufacturing in the U.S. This news came after smartphones, computers, and other electronics were excluded from the recent reciprocal tariffs temporarily.
An exemption on auto tariffs, including those on foreign cars and auto parts, could provide relief to automakers. The three largest U.S. automakers saw an increase in stock shares following Trump’s comments. The tariffs on foreign vehicles went into effect on April 3, with levies on auto parts set to follow by May 3.
While the Trump administration has exempted many tech products from tariffs on China and other countries, they remain subject to 20% tariffs imposed on China to address the manufacturing of fentanyl. The exemptions are short-term, with plans to target these products in upcoming tariffs on semiconductors. It is unclear if there will be a short-term exemption on auto parts, foreign cars, or both.
Amid escalating U.S.-China trade tensions, China and Vietnam signed cooperation deals to strengthen their trade alliance. President Trump praised the meeting between the two countries while questioning their intentions towards the United States. The White House highlighted tech firm Nvidia’s plans to build U.S. factories for AI supercomputers as a success of Trump’s tariff agenda.
