The exemptions for smartphones and PCs from tariffs are only "temporary": imported electronic devices will likely be subject to other tariffs set as part of a national security investigation into the semiconductor industry.
The clarification by the US Secretary of Commerce is a hard blow for Silicon Valley - Apple and Nvidia first and foremost -, for those who were hoping for an easing of trade tensions with China and for the markets, on which uncertainty seems to be increasing rather than decreasing.
The announcements, backtracking and clarifications from the Trump administration over the past ten days have fueled volatility on Wall Street and triggered an investor flight from the dollar and Treasuries, casting doubt on the United States' status as a 'safe haven' in the global economic and financial system. The greenback and American debt securities are being closely watched by Wall Street and the Fed.
After having assured that it is ready to intervene if necessary, the American central bank is still waiting. The president of the Minneapolis Fed, Neel Kashkari, has shown confidence in the reopening of the markets but, at the same time, has specified that the only thing the central bank can do at this time is to anchor inflation expectations. In this context, analysts are looking at the next week of trading with concern, nervous in the face of the new expected announcement by Trump on chips. The fear is of a new collapse in the price lists in the absence of good news on the trade front.
The exemption from reciprocal tariffs on smartphones and PCs had been welcomed because it protected Apple and Nvidia, two of the Silicon Valley giants dear to Wall Street. But since it is only a temporary truce, fears are rising again.
(Online Union)
