[Text/Observer Network Qi Qian] As expected, a new day has begun and the United States' tariff policy is about to change again.
According to reports by the Associated Press and The New York Times, on April 14 local time, US President Trump revealed several pieces of information about tariff policy "turnarounds" at a White House press conference, including possibly considering temporarily canceling car tariffs and potentially imposing new tariffs on semiconductors and pharmaceutical products. Meanwhile, Trump also boasted that he had "helped" Apple CEO Cook.
The report stated that during his meeting with El Salvadorian President Bukele at the White House that day, Trump made the aforementioned series of statements. Trump told reporters that regarding semiconductors and medicines, "the higher the tariff, the faster they will enter (the US)." He mentioned previous import tariffs on steel, aluminum, and cars and hinted that new tariffs on semiconductors and medicines would soon be imposed.
Late that day, the White House issued a federal announcement stating that it had initiated an investigation into so-called "national security" related to chip and medicine imports. The investigation will also cover machines used to manufacture semiconductors, products containing chips, and products containing drug ingredients. White House spokesperson Kush Desai said that Trump "has long been clear on the importance of manufacturing returning home, which is crucial for our national and economic security."
The New York Times noted that semiconductors power electronics, cars, toys, and other products. The US heavily relies on chips imported from Taiwan and other parts of Asia, with both parties describing this reliance as a major risk to "national security." China, Ireland, and India are important sources of some medicines for the US.
On that day, when asked about possible exemptions, Trump implied that he might grant tariff relief to certain large companies.
"I am a very flexible person. I won't change my mind, but I am flexible," Trump said. "I am considering some measures to help some car companies" so that car manufacturers have time to adjust their supply chains. He also added that he recently spoke with Apple CEO Tim Cook and "helped" him.
Trump met with El Salvadorian President at the White House on April 14 - Video screenshot
The Associated Press pointed out that Trump's latest statement implies another reversal in his tariff policy. Recently, Trump's imposition of import taxes has caused panic in financial markets and deep concerns among Wall Street economists about the possibility of an economic recession in the US.
On March 27, when Trump announced a 25% tariff on imported cars, he called it a "permanent" tariff. This tariff officially took effect in early April. Afterward, Trump announced so-called "reciprocal tariffs" targeting the entire world, causing massive fluctuations in global stock markets. As the economic and political backlash from Trump's tariff policies grew, his hardline stance on trade issues became increasingly unclear.
Last week, after the bond market sell-off pushed up US debt interest rates, Trump announced a 90-day suspension of the "reciprocal tariffs" while maintaining a 10% baseline rate, simultaneously raising the tariff on Chinese goods to 145%. Following continued selling pressure on US treasuries, Trump then announced a temporary exemption from some tariffs on electronic products, later denying that it was an "exemption" and threatening separate taxation.
The New York Times mentioned that many industry executives and analysts began to question the true motivation behind the Trump administration's temporary exemption of electronic product tariffs, whether it was to avoid a significant increase in product prices or to help technology companies like Apple.
"Trump has brought tangible benefits to Apple," a recent report by Capital Economics concluded. "The exemption for smartphones obtained by Apple CEO Cook may promote lobbying activities by other industry companies."
The Associated Press mentioned that Trump's tariffs on China significantly affected Apple. Many Apple products, including the iPhone, are assembled in China.
Reportedly, even if the policy of exempting electronic products is temporary, this "temporary reprieve" gives Apple some breathing room. Dan Ives, an analyst at Wedbush Securities, said that Apple's current situation is clearly much better than before, but he warned that there remains "great uncertainty, chaos, and confusion" in Trump's policies.
In January this year, Cook attended Trump's inauguration ceremony - Video screenshot
According to The New York Times, some tech companies responded to Trump's call for expanding production in the US. For example, semiconductor manufacturer TSMC announced plans to invest $100 billion over four years to expand capacity in the US. Apple announced plans to invest $500 billion over four years to build factories across the country. Chipmaker NVIDIA announced plans to collaborate with companies like TSMC over the next four years to produce $500 billion worth of artificial intelligence infrastructure in the US.
The White House views this as a result of Trump's policies. However, some critics questioned how much help tariffs could actually provide to the US semiconductor industry, given the Trump administration's threat to cancel chip subsidies. According to data compiled by the global semiconductor supplier association SEMI, by 2028, it is expected that 105 new chip factories will come online globally. Only 15 of these are planned to be set up in the US.
Additionally, as Trump considers extending exemptions to large American tech companies such as Apple, NVIDIA, and automakers, small businesses in the US are urgently wondering when and if they will receive exemptions and whether they can survive until then.
"This is not just about Apple or big companies; it’s about many small businesses," Tina Wells, a former importer and current retail consultant, questioned when interviewed by Yahoo Tech on April 13. She criticized that the unpredictable tariffs have dealt a heavy blow to small businesses, potentially forcing many small stores to close. She described Trump's tariff policy as "extremely chaotic," likening it to a game of "whack-a-mole."
In recent days, small businesses across various industries in the US have been in turmoil. CNBC and CNN and other foreign media outlets reported that for most small business owners in the US, Trump's 145% tariff on China will soon cause "irreversible" damage. Furniture, toys, clothing, sports equipment, and other consumer goods in the US are highly dependent on imports from China.
Several industry executives said that now, the US supply chain is experiencing unprecedented disruptions since the pandemic, which exceeds what small businesses can endure. At the same time, data analysts pointed out that despite this, "no company" wants to move production from China to the US.
This article is an exclusive contribution by Observer Network and cannot be reprinted without permission.
Original text: https://www.toutiao.com/article/7493360978718016050/
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