The recent tariff exemptions for electronics could be short-lived, as the Biden administration prepares new trade measures aimed at boosting domestic semiconductor production.
Commerce Secretary Howard Lutnick said Sunday that the White House’s decision to temporarily exclude items such as smartphones, laptops, and other consumer electronics from the latest round of tariffs is just that — temporary.
Speaking on ABC’s This Week, Lutnick revealed that a new round of duties, this time targeting semiconductors, could be rolled out within the next month or two.
“All of those products fall under semiconductors,” Lutnick said. “They’re going to get a special category of tariffs to make sure production gets reshored.”
The goal, according to Lutnick, is to strengthen national security by encouraging the U.S.-based manufacturing of semiconductors and flat panels — two critical components in modern electronics. The move would also reduce reliance on Asian supply chains, a strategic priority for the administration.
The update follows a Friday bulletin from U.S. Customs and Border Protection that confirmed a temporary exemption for a broad swath of consumer electronics from the reciprocal tariffs announced earlier this month by President Donald Trump.
However, Lutnick made clear that those same products will likely be included in a more targeted policy framework designed to protect and bolster U.S. manufacturing in key sectors, including pharmaceuticals and chips.
“We need to have chips and flat panels made in America,” he said.
Markets took quick notice. Bitcoin briefly dipped by about 1% following Lutnick’s remarks before bouncing back to around $84,000. The broader crypto market, tracked by the CoinDesk 20 (CD20) index, is down approximately 1.6% over the past 24 hours.
