[Source/Observer Network, Liu Chenghui] "No one can figure out what the rules will be like in five days"—this is a Democratic senator's complaint about Trump's tariff policy. Under widespread criticism from the market and strong countermeasures from China, the Trump administration has begun to show signs of chaos: just as he loudly announced new tariffs, he adjusted his tariff policies twice within three days. However, this chaotic farce seems far from over.

Following the White House's quiet exemption of products such as mobile phones and computers from reciprocal tariffs, Trump suddenly changed his stance on social media on April 13, claiming that the U.S. government had not announced any exemptions for tariffs, but rather that these products had been transferred to another category of tariffs. Commerce Secretary Raimondo also told the media the same day that these tariff measures were temporary, and these products would face separate taxation in a few months. This statement further fueled Wall Street's concerns about the uncertainty of Trump's tariff policies. A senior executive at a securities firm criticized that the constant messages coming from the White House have caused massive confusion, leaving the entire industry and investors dizzy, creating significant uncertainty for companies trying to plan supply chains, inventory, and demand.

Trump declared on his self-created social platform "Truth Social" that these products are still subject to a 20% tariff due to fentanyl issues, but they have merely been transferred to another category of tariffs. He also stated that the U.S. will review semiconductors and the entire electronic supply chain in an upcoming national security tariff investigation.

Raimondo during an interview with ABC's "This Week" program

Earlier that day, Raimondo made the same statement during an interview with ABC's "This Week" program. He said that the Trump administration's decision on April 11 to temporarily exempt tariffs on smartphones, Apple phones, and laptop computers was only a temporary deferral, and these products would face separate taxation.

"What he (Trump) means is that electronics are exempt from reciprocal tariffs, but they fall under semiconductor tariffs, which may be implemented within one or two months," Raimondo said, adding that tariffs targeting specific industries will be levied on certain products critical to national security in the coming months, and these tariffs are "non-negotiable."

When asked if the tariffs on iPhones would "return in about a month," Raimondo replied, "Yes. That’s it... We need medicines, semiconductors, and our electronics also need to be manufactured in the U.S."

The Financial Times pointed out that the above comments will further fuel Wall Street's concerns about tariff uncertainties, as Trump's tariff policies have seen a series of reversals, causing the stock market to fluctuate wildly like a roller coaster, and last week the $29 trillion U.S. bond market also saw selling pressure.

On April 9 local time, just hours after the so-called reciprocal tariffs took effect, Trump reversed his order again, announcing a 90-day moratorium on taxes for most countries, while retaining a basic tariff of 10%.

A few days later on April 12, very differently from the grand announcement of the reciprocal tariffs, the U.S. quietly published a memorandum exempting some products, including computers, smartphones, semiconductor manufacturing equipment, and integrated circuits, from the reciprocal tariffs.

The Financial Times viewed this move as the first signal that Trump's tariffs on China were loosening. Reuters also believed that this represented another "retreat" (step back) by Trump from extreme tariff policies.

U.S. media analysis suggested that this exemption would benefit tech companies like Apple and Samsung Electronics. CNBC cited investment bank data stating that more than 80% of Apple's products are produced in China. Most of Apple's core products, including the iPhone, iPad, Apple Watch, and AirTags, fall within the exempted range.

U.S. media analysis suggests that this exemption will benefit tech companies like Apple and Samsung Electronics because more than 80% of Apple's products are produced in China. Bloomberg

China's Ministry of Commerce spokesperson said on April 13 that this was a small step by the U.S. to correct its unilateral reciprocal tariff error. The spokesperson emphasized that trade wars have no winners, and protectionism has no way out. We urge the U.S. to face the rational voices from the international community and domestic parties, take a big step forward in correcting errors, completely cancel the wrong practice of reciprocal tariffs, and return to the correct path of mutual respect and resolving differences through equal dialogue.

CNN described the latest statements by Raimondo and Trump as making Trump's tariff policy on China even more chaotic. Although the Trump administration insists that tariffs will enhance the U.S. economy by promoting manufacturing and protecting jobs, sudden changes in tariffs have caused a stock market crash, a sharp drop in American consumer confidence to the second lowest level since 1952 on record, and raised concerns about a recession.

Elizabeth Warren, a Democratic senator from Massachusetts, used the term "chaos and corruption" to describe the unpredictable nature of Trump's tariff policies when interviewed by CNN's "State of the Union."

"When Donald Trump plays the 'red light, green light' game on tariffs and says 'oh, you can get special exemptions for my special donors,' investors won't invest in the U.S."

"No one can figure out what the rules will be like in five days, let alone five years from now," she said.

Dan Ives, an analyst at the renowned U.S. investment bank Wedbush Securities, said: "The mass confusion caused by these messages constantly coming from the White House has left the entire industry and investors dazed, creating significant uncertainty and confusion for companies trying to plan supply chains, inventory, and demand."

Billionaire Bill Ackman, a well-known hedge fund manager who supported Trump in last year's election, previously warned that Trump's administration was losing the trust of global business leaders due to its tariff policies and should suspend the trade war.

Ackman urged again on X platform to expand tariff relief measures to all Chinese imports. He claimed that Trump tried to pressure China into negotiations by maintaining high tariffs on China. "The problem is that millions of small and medium-sized American businesses cannot adapt to the tariffs on China overnight."

Ray Dalio, founder of the world's largest hedge fund Bridgewater Associates, warned on April 13 that Trump's tariffs are "extremely destructive," akin to throwing stones into the production system.

He expressed concern on NBC's program that we are at a pivotal point, very close to a recession. If handled improperly, he worries that worse outcomes could occur than just a recession.

He also expressed concern about the combined impact of U.S. debt, budget deficits, and global political tensions. "We are in the midst of a profound transformation of the world order... Considering factors like tariffs, debt issues, and emerging powers challenging existing ones... how we address these issues may lead to consequences worse than a recession."

Original article: https://www.toutiao.com/article/7492973601889665570/

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