Secretary Lutnick's Interview with ABC
"Permanent Exemption Not Possible... Not Subject to Negotiation"
Howard Lutnick, U.S. Secretary of Commerce, announced on the 13th (local time) that separate semiconductor tariffs will be imposed about a month later on electronic products such as smartphones and PCs, which were excluded from reciprocal tariffs. This suggests that the exemption from reciprocal tariffs on some electronic products may be a temporary measure.
In an interview with ABC's "This Week" on the same day, Secretary Lutnick said, "These products are exempt from reciprocal tariffs, but they will likely be included in the semiconductor tariffs to be applied within a month or two," adding, "The tariffs will be applied soon."
He explained, "It is not something that can be permanently exempted," and "It was made clear that this is not something that countries can eliminate through negotiations."
This is interpreted to mean that when President Trump officially announces the semiconductor tariffs he has repeatedly previewed, tariffs will be reimposed on electronic products equipped with semiconductors. Previously, President Trump announced that 25% tariffs would be imposed on semiconductors and pharmaceuticals following steel, aluminum, and automobiles.
When asked whether the reciprocal tariffs temporarily exempted on smartphones, laptops, etc., would be reimposed in another form, Secretary Lutnick replied, "Yes," and said, "A tariff model to encourage domestic production will be applied to semiconductors and pharmaceuticals."
Earlier, the U.S. Customs and Border Protection (CBP) announced on the 11th that smartphones, laptops, hard disk drives, computer processors, memory chips, semiconductor manufacturing equipment, and others would be excluded from reciprocal tariffs. This was two days after the full enforcement and suspension of reciprocal tariffs on the 9th.
Regarding the timing of imposing tariffs by item, Secretary Lutnick stated, "Electronic products will be included in the semiconductor tariffs likely to be applied in about a month," and "These two sectors (semiconductors and pharmaceuticals) will be included next month or the month after."
He emphasized, "We need pharmaceuticals and semiconductors, and our electronic products must be produced in the United States," adding, "We cannot rely solely on foreign countries for the basic things we need. Our pharmaceuticals and semiconductors must be produced in the U.S."
President Trump is expected to announce the semiconductor tariffs soon. On the 12th, he told reporters regarding the semiconductor tariffs, "I will give you the answer on Monday (the 14th)." White House spokeswoman Caroline Levitt said, "President Trump will soon announce the results of the Section 232 investigation under the Trade Expansion Act concerning semiconductors."
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