Trump tariffs dwell: President suggests he can predict the longer term whereas markets react to tech obligation pause
Donald Trump says no country is “off the hook” for “unfair trade balances” ahead of his expected new tariffs on powerful computer chips.
Global stock markets reacted positively on Monday after the White House excluded smartphones and other electronics from the ultra-high levies on goods imported from China, but the president said he would detail the new tariffs on semiconductor chips this week.
Trump also said those goods were not exempted from duties entirely, rather they had been put in a new “tariff bucket” and remain subject to the broad 20 percent hike the White House had previously placed on Chinese goods in its fight against fentanyl.
Commerce Secretary Howard Lutnick made clear that critical technology products from China would face separate new duties along with semiconductors within the next two months.
Trump said he wants companies to make chips and semiconductors in the U.S. so the American economy is not “held hostage” by other countries.
“THE BEST DEFINITION OF INTELLIGENCE IS THE ABILITY TO PREDICT THE FUTURE!!!” he wrote on social media on Monday.
Trump congratulates Daniel Noboa on Ecuador election win
Donald Trump has congratulated the sitting president of Ecuador, Daniel Noboa, for his election win.
“Congratulations to Daniel Noboa, who will be a great leader for the wonderful people of Ecuador. He will not let you down!” he wrote on social media.
Noboa is a conservative who has defined his presidency so far through tough military crackdowns on crime gangs
Leftist presidential rival Luisa Gonzalez told supporters she did not accept the results and demanded a recount, claiming there had been “grotesque” fraud. She did not offer details to back up that claim on Sunday night.
Trump blames Biden for Ukraine war, saying ‘I just got here’
The president has repeated his claims that former President Joe Biden is to blame for the war between Russia and Ukraine.
“I just got here, and for four years during my term, had no problem in preventing it from happening. President Putin, and everyone else, respected your President!” he wrote on Truth Social.
“I HAD NOTHING TO DO WITH THIS WAR, BUT AM WORKING DILIGENTLY TO GET THE DEATH AND DESTRUCTION TO STOP.
“If the 2020 Presidential Election was not RIGGED, and it was, in so many ways, that horrible War would never have happened.”
He continued by repeating unfounded claims that the Ukrainian president and Biden allowed the war to begin: “President Zelenskyy and Crooked Joe Biden did an absolutely horrible job in allowing this travesty to begin. There were so many ways of preventing it from ever starting. But that is the past. Now we have to get it to STOP, AND FAST. SO SAD!”
The war in Ukraine began just over three years ago after Russia invaded Ukraine. Vladimir Putin ordered the invasion (which he called a “special military operation”) over baseless claims that Ukraine needed to be “de-Nazified”.
Trump economic advisor says ‘pretty much everything’ will be covered by a form of tariff
Kevin Hassett, a top economic adviser to President Trump, says national security will be the key consideration when deciding which electronics would be exempted from tariffs.
When asked whether there would be any exemptions on any electronics, Hassett said: “What we’re talking about is coverage … and pretty much everything is going to be covered. The question is which law applies.”
He continued: “And so if there’s something that has a national security effect on things, so if we buy it from some other country, then we might be unprepared in time of war if they were to turn off that thing.
“Then we’ve got the reciprocal bucket, which is pretty much everything else.”
Asked whether the U.S should be concerned about other countries getting closer to China as a result of the administration’s tariffs, Hassett said: “The White House is concerned about China, period.”
Speaking to reporters outside the White House this morning he said in a year’s time, Trump’s policies would be seen a “big positive” for the country.
Watch: Donald Trump appears to snub Robert F Kennedy Jr’s wife at UFC
Attending a UFC fight on Sunday evening, Donald Trump appeared to snub Robert F Kennedy Jr’s wife Cheryl Hines.
The president posts, but no comment yet on tariffs
Donald Trump has posted on his preferred social media platform today, but has yet to comment on any further changes to tariffs.
“THE BEST DEFINITION OF INTELLIGENCE IS THE ABILITY TO PREDICT THE FUTURE!!!” he wrote on Truth Social.
Earlier on Monday, tech stocks surged despite ongoing confusion over tariffs on electronics.
Wall Street futures rose on Monday and most tech stocks surged after the White House announced on Friday evening it was exempting smartphones and computers from the 145 percent tariffs on China.
That was followed by Trump saying he would announce tariffs on imported semiconducters – key components of electronics – later this week.
US Commerce Secretary Howard Lutnick also said exempted tech products would face new tariffs within the next two months.
What are semiconductors and why do they matter?
Semiconductors are the basic building blocks for electronic chips.
They are a family of materials which can either conduct or insulate electricity, depending on the circumstances.
As Stanford University says, these semiconductors go into chips are almost everywhere in 21st-century life – from household devices like laptops and smartphones, to renewable energy systems and the broadband infrastructure of the internet.
The global semiconductor industry was valued at $627.6 billion in 2024 by the Semiconductor Industry Association with further growth projected.
Over half of the world’s supply is manufactured in Taiwan, much of which is produced by the Taiwan Semiconductor Manufacturing Company for companies including Apple and Nvidia.
Trump expected to announce semiconductor chip tariffs soon
Donald Trump said he would announce tariffs on semiconductor chips “over the next week.”
The president made the announcement aboard Air Force One on Sunday night while flying to Washington, D.C., after a weekend in Florida.
He said that the levies “will be in place in the not distant future,” although he indicated he could offer flexibility to some companies.
Trump previously said that he would announce further details on the tariffs Monday.
Earlier Sunday, Trump announced a national security trade probe into the semiconductor sector.
“We are taking a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN in the upcoming National Security Tariff Investigations,” he posted on Truth Social.
Bessent expected to host Spain’s economy minister as EU nation cozies up to China
Spanish Economy Minister Carlos Cuerpo is due to meet with Scott Bessent on Tuesday, just days after the U.S. Treasury secretary criticized the European nation’s possible pivot toward China.
The meeting aims to bolster bilateral ties between the two countries, Cuerpo told reporters Monday.
It comes days after Spain said it would pursue closer trade ties with China, ignoring U.S. warnings that cozying up to the Asian nation would be akin to “cutting your own throat.”
Spain’s Prime Minister Pedro Sánchez became the first European leader to make an official visit to China since the escalation of tensions sparked by Donald Trump’s trade war.
ICYMI: There are no winners in Trump’s trade war, Xi Jinping says
Chinese President Xi Jinping said that there will be “no winners” from Donald Trump’s trade war.
Jingpin issued the warning in an editorial piece in Vietnam’s Nhân Dân newspaper Monday.
“There are no winners in a trade war, or a tariff war,” he said, according to Beijing’s Xinhua news agency said. “Our two countries should resolutely safeguard the multilateral trading system, stable global industrial and supply chains, and open and cooperative international environment.”
“Trade war and tariff war will produce no winner, and protectionism will lead nowhere,” Jinping added.
The Chinese president is currently embarking on a diplomatic tour of Southeast Asia which includes visits to Vietnam, Malaysia and Cambodia.
What to stockpile with new tariffs in place
Experts warn consumers shouldn’t go “full 2020 toilet paper crisis mode” on stockpiling, but say there are some key goods people should stock up on as tariffs take effect.
Ryan Haiss, a certified financial planner at Flynn Zito Capital Management, told MarketWatch consumers should focus on big-ticket items.
If you’re planning to buy a car and prefer an imported one, expect an immediate price impact. Compare your options and check which models have been affected so you can make an informed decision,” he said.
Financial planner Scooter Thomas told Good Housekeeping: “TVs, handheld electronics, your Beats headphones — all are about to be very expensive”.
Source: independent.co.uk
