Howard Lutnick, Secretary of Commerce Reuters Report.
Lutnik, speech ABC This Weeksaid the government will adopt a “special concern tax rate” in the next two months. This will include tariffs on semiconductors, drugs and certain electronic devices, which are already 125% outside the steep countdown tariff range.
“He is saying they are not subject to reciprocity tariffs, but they are included in the semiconductor tariffs, which are about a month or two,” Lutnik said.
He stressed that these projects are crucial to national security and should be made at home. “These are national security and we need to make it in the United States.”
On Friday, the Trump administration excluded several technology products from reciprocity tariffs, providing temporary weightlifting for companies such as Apple and Dell. However, Lutnick’s comment clearly shows that the breathing chamber may be short.
Trump’s approach to transformation has shocked the market since January, leading to major volatility and has dropped the S&P 500 by more than 10%. Analysts say frequent changes make it difficult for businesses and investors to plan ahead.
Lutnick made a comment after Saturday’s statement on the upcoming national security investigation into semiconductors. China responded by raising tariffs to 125%, saying it was reviewing U.S. exemptions to technology projects.
China’s Ministry of Commerce said: “The bells on the tiger’s neck can only be bound by people tied up.”
Bill Ackman, a billionaire investor, urged Trump to suspend Chinese tariffs for 90 days, reflecting his temporary relief to other countries. “He will achieve the same goal … without disruption and risk,” Ackerman said on X.
Market strategist Sven Henrich criticized the mess. “Emotional check: the day Lutnick was fired, the biggest gathering of the year will be,” he said. “The U.S. business cannot be planned or invested constantly back and forth.”
Democratic Senator Elizabeth Warren also attacked the lack of consistency in policy. “There is no tariff policy, only chaos and corruption,” she said.
The U.S. Customs and Border Protection notice lists 20 technology-related product categories exempt from tariffs, including computers, memory chips and monitors. However, the 20% tariff related to the fentanyl crisis remains.
White House adviser Peter Navarro confirmed the propaganda of several allies besides China. Meanwhile, Trade Representative Jamieson Greer said Trump has no plans to talk to President Xi Jinping, but hopes to obtain a non-China trade deal as soon as possible. “My goal is to get meaningful deals 90 days ago,” he said.
Ray Dalio warns of the terrible economic consequences. “At the moment, we’re at the decision point and we’re very close to recession,” he said. “And I’m worried about something worse…if that doesn’t handle it well.”
