US Tariff News

US exempts computers, smartphones from Trump tariffs

Smartphones, computers and other electronics are exempted from the growing tariffs trade offensive by the Trump administration.

A notification released late Friday night by the US Customs and Border Protection Office said a host of popular high -tech products for American consumer will not be subject to tariffs and will buffer the public from the increasing cost of omnipresent goods required in everyday life.

Before the administration gave smartphones and electronics exemption, Apple’s popular iPhone – most of which are manufactured in China – could see an increase in prices on a large scale, depending on how Apple reacts to sweeping levy. Experts estimated that the cost may jump by hundreds of dollars.

iPhone The 16 Pro Max 256 GB, which retails for $ 1,199, will jump by $ 1,874, as per an analyst of UBS Investment Research.

Interestingly, the new notice details exemption that covers various electronic goods, including smartphones and components entering the United States from China.

China and the United States have traded barbs over tariff hike in the last two weeks. China said on Friday that it will increase the tariff on US goods from 84% to 125%. High tariffs were about to come into force on Saturday, and China said it would not respond to future American tariff hike. After stopping tariffs on most other countries, President Trump’s universal tariffs on China are increased to 145% now.

Experts had said that the tariffs increased the risks of recession and possibly facilitate inflation.

According to Stephen Miller, the Deputy Chief of Staff of the White House, these electronics are still subject to 20% tariffs on goods imported from China. The tariff declared by the Trump administration on 1st February, was intended to prevent drugs from being sent from Mexico to the United States.

White House Press Secretary said in a statement on Saturday that President Trump “has clarified that the US cannot rely on China for the manufacture of important technologies… Now these companies are hustling to increase their manufacturing in the United States as soon as possible.”

US Tariffs Update: EU postpones countermeasures by 90 days

The tariff between the US and China remains unsettled as US President Donald Trump on Wednesday increased the tariff on Chinese products by 125%. Within a few hours, China retaliated and implemented 84% tariff on imports from the US.

China’s Foreign Ministry said that this US strategy ‘will not win the support of the people and will finally fail. China made it clear that it does not want to fight, but will not be afraid of America’s threats. However, the Chinese Ministry of Commerce said that the door is open for talks and is expected to find a solution from the US on the basis of ‘mutual honor’ and ‘Win-Win Cooperation’.

Meanwhile, Trump has given 90 days exemption in tariffs for 75 countries, including India but China has been excluded from it. Trump hoped that there would be a good agreement soon.

Talking to reporters at the White House, Trump praised Chinese President Xi Jinping and called him ‘one of the smartest people in the world’ and said, ‘We will make a good compromise.’ He indicated that he is ready for a direct conversation with Xi and said, “There will be a time when we will get a phone call from China and everything will move forward rapidly.”

EU postpones countermeasures

European Commission Chairman Ursula von Der Leyen announced that the European Union (EU) would give a break of 90 days on imposing anti -anti -counter tariffs against the US. The decision has come after tariff pose announced by US President Donald Trump, in which he has reduced the fee on other countries except China to 10%.

Brazil’s Embraer to suffer from US tariffs as costs of jets ‘fly high’

The global economy is in a state of flux following the introduction of new tariffs by U.S. President Donald Trump and the jitters can be seen in Brazilian jet maker Embraer, which has voiced concerns citing costs of jets to be higher and even flying high along with their jets.

The tariffs, which are expected to set a minimum of 10% duties for all U.S. imports from countries like Brazil are predicted to add complexity and costs to Embraer’s business and its customers in the United States. The aerospace sector, which has operated without tariffs on parts or finished products for decades, is expected to be significantly impacted by these tariffs, according to a statement released by Embraer.

The introduction of these tariffs has not only affected Embraer but has also led to a sharp sell-off on Wall Street, marking the sharpest since the COVID-19 crisis. Asian stocks slumped as fears of a global economic slowdown grew. Japan ’s Nikkei 225 dropped 2.6%, while South Korea ’s Kospi slipped 0.8%. Australia’s S&P/ASX 200 sank 1.9%, and Chinese markets were closed for a public holiday.

The sweeping and aggressive implementation of these tariffs by Trump has taken even the pessimists by surprise. Mary Ann Bartels of Sanctuary Wealth called it the “worst-case scenario.”

Otherwise, the longest-running trade dispute was probably between the US Trade Representative (USTR), on behalf of Boeing, against “illegal” subsidies used by Airbus to launch every one of its airplane programs from inception in 1970 with the A300.

These subsidies came from the French and German governments, local taxing jurisdictions, and other entities. Called launch aid, the governments usually advance Airbus hundreds of millions of dollars for each airplane program.

South Korea’s Acting President Holds First Call With Trump Amid Tariff Tsunami

Acting President Han Duck-soo of South Korea held his first phone conversation with U.S. President Donald Trump on Tuesday, breaking days of diplomatic silence following the stunning ouster of President Yoon Suk Yeol, whose abrupt imposition of martial law last year plunged the country into political turmoil.

The call marked the first direct communication between the allies since the Constitutional Court last week upheld Yoon’s impeachment, removing him from office just four months after his controversial national security order shocked the public and ignited fierce protests.

Officials in Seoul said the leaders discussed ways to maintain bilateral cooperation amid regional security tensions and economic uncertainty — including fallout from Trump’s protectionist trade policies and North Korea’s ongoing weapons activity.

The leadership vacuum in South Korea had raised concerns in Washington and beyond, with key diplomatic initiatives, including joint military planning and economic talks, potentially stalled. Han, who stepped in as caretaker president following Yoon’s removal, is now tasked with maintaining continuity until a new head of state is elected.

Earlier Tuesday, the South Korean government formally set June 3 as the date for a special presidential election, in line with constitutional requirements mandating a vote within 60 days of a vacancy. That day will also be recognized as a temporary public holiday, officials confirmed.

As South Korea navigates this transition, all eyes will be on the June election — and on how Acting President Han manages relations with the United States in the meantime.

“Waiting For A Call” Says Trump But Beijing Still Seen Reluctant

Wall Street staged a resilient rebound Tuesday, clawing back some of last week’s historic losses as hopes flickered that President Trump might leave the door open for dialogue with Beijing—even as his administration prepares to implement the most aggressive tariff package in modern U.S. history.

The market’s response underscored both its deep anxiety and its reflexive optimism in the face of trade brinkmanship. The S&P 500 and Nasdaq closed firmly in the green, snapping a multi-session losing streak that had erased trillions in value amid fears that a full-scale trade war with China was no longer hypothetical but imminent. Shares in Europe followed suit, rising off 14-month lows, with investors latching onto the faintest signal that economic logic might still temper political will.

President Trump’s comments, delivered with characteristic vagueness, suggested he was “waiting for a call” from China and that a deal “will happen.” However, senior officials in his administration quickly moved to downplay expectations, saying trade talks would prioritize allies like Japan and South Korea—countries already in the throes of delicate negotiations over tariff exemptions and quotas.

For now, Beijing appears in no mood to indulge the White House’s on-again, off-again overtures. Chinese officials denounced Washington’s tactics as “blackmail” and promised retaliation. While the Ministry of Commerce has been tight-lipped about specific countermeasures, signs point to a policy of strategic endurance rather than capitulation. China’s stance reflects a growing belief in Beijing that the U.S. tariffs are less about economic leverage and more about domestic political theater.

Back in the U.S., companies are moving quickly to adapt. Chipmaker Micron informed clients it would begin passing on a “tariff surcharge” as early as Wednesday. Apparel firms have frozen hiring plans, and importers of consumer goods are revising supply chains and pricing models at breakneck speed. Running shoes manufactured in Vietnam, for instance, are projected to leap from $155 to $220 once the 46% tariffs kick in.

Consumers, already jittery, are starting to react in familiar ways. Panic-buying is emerging in some parts of the country, as price-conscious households brace for sticker shock across a wide range of essentials and durable goods. The surge in bulk buying of canned goods and pantry staples is eerily reminiscent of early pandemic behavior and reflects the broader uncertainty permeating the American middle class.

Global supply chains, long accustomed to political turbulence, are being tested in new ways. U.S. manufacturers reliant on parts from Asia are accelerating offshoring strategies, hedging not only against tariffs but against the volatility of executive policymaking. China, meanwhile, is moving production lines to Southeast Asia and boosting domestic demand as a shock absorber.

Even diplomatic channels are shifting. With Europe facing tariffs on autos, metals, and now potentially agricultural products, Brussels is reportedly drawing up a countermeasure list that includes soybeans and sausages. While officials say they remain open to negotiation, the bloc is clearly preparing for escalation.

In a particularly sharp turn, European pharmaceutical executives warned Commission President Ursula von der Leyen that the continued tariff threats could accelerate investment migration to the United States, undermining Europe’s ambitions to remain a global biotech hub.

The irony is stark. A White House intent on reshoring American industry may inadvertently spark a transatlantic corporate exodus—just not in the direction many in Washington anticipated.

Markets may have found their footing temporarily, but there is little conviction behind the bounce. Wall Street is, as ever, pricing in the possibility of a last-minute reversal by a president who has made unpredictability a governing principle. Whether that hope is a bet or a mirage remains to be seen.

Wall Street Climbs as Hopes Rise for Tariff Thaw; Japan Trade Team For Talks Soon

U.S. stocks roared back on Tuesday, staging a dramatic rebound fueled by hopes that the White House might soften its stance on tariffs after President Trump announced that Japan would dispatch a delegation for trade talks. Investors, rattled by fears of a deepening global trade war, found a glimmer of optimism in signs that negotiations could be on the horizon.

The Nasdaq Composite led the charge, climbing 4.24% as tech stocks powered higher. A key semiconductor index surged more than 5%, underscoring the relief rally in a sector seen as particularly vulnerable to escalating trade tensions. The S&P 500 gained 3.77%, while the Dow Jones Industrial Average jumped nearly 1,400 points, or 3.68%, marking one of its strongest sessions in recent months.

“The market was extremely oversold coming into today,” said Adam Sarhan, CEO of 50 Park Investments. “Investors are reacting to the possibility that cooler heads could prevail on tariffs. But nothing is resolved yet — this could be a pause, not a pivot.”

The catalyst came from Washington, where President Trump announced that Japan would dispatch a delegation for trade talks. The move follows his recent declaration of a 25% tariff on imported autos, a policy that rattled Asian markets and prompted warnings from economists about the risk of recessionary spillovers.

Japan, heavily reliant on auto exports, quickly responded, with Prime Minister Fumio Kishida expressing concern over what he called a “destabilizing” approach to global commerce. South Korean officials also entered the fray, with acting President Han Duck-soo holding talks with Trump on broader trade issues including shipbuilding and energy exports.

The renewed diplomatic activity helped fuel a global rally. Europe’s STOXX 600 index advanced 3.69%, and Japan’s Nikkei 225 soared 6%, its best day in more than a year. MSCI’s benchmark of world equities climbed 3.4%, snapping a three-day skid.

Back in the U.S., market participants are also gearing up for the start of corporate earnings season — another potential catalyst. “If the numbers come in strong, that could lend more stability to this rally,” Mr. Sarhan said.

Yields on U.S. government bonds also moved sharply higher for a second straight day, a sign that investors may be pricing in reduced recession risks. The benchmark 10-year Treasury yield rose to 4.24%, while the two-year yield hit 3.84%.

Meanwhile, currency markets remained jittery. The dollar index edged lower, weighed down by the uncertainty in trade policy, while the Japanese yen gained ground against the greenback. The Chinese yuan weakened further, trading at 7.373 to the dollar in offshore markets, as Beijing pushed back on Washington’s latest threats.

Crude oil prices inched higher, with U.S. benchmark crude settling above $61 per barrel. Brent crude rose to nearly $65, buoyed by the broad risk-on sentiment.

Still, volatility remains the name of the game. President Trump doubled down on his stance with China, warning of additional 50% tariffs should Beijing maintain its retaliatory measures. Chinese officials responded with sharp language, saying they would not “yield to economic coercion.”

For now, markets are betting — cautiously — that diplomacy might yet avert an all-out trade conflict. But with headlines shifting by the hour, investors aren’t ready to declare the storm over just yet.

“We’re in a fragile place,” said Sarhan. “Hope is driving this bounce. But hope isn’t a policy.”

South Korean Stocks Take Huge Hit, Plummet 5.5% As Monday Bloodbath Continues

South Korean stocks took a significant hit, plummeting more than 5.5 percent on Monday. This marked the fourth consecutive day of losses, a trend triggered by panic selling in response to escalating global trade tensions sparked by US reciprocal tariffs. The Korean won also experienced its most significant fall since the COVID-19 pandemic against the U.S. dollar.

The Korea Composite Stock Price Index (KOSPI), the benchmark index, shed 137.22 points, or 5.57 percent, to close at 2,328.20. The tech-heavy KOSDAQ also experienced a significant dip of 5.8 percent. The steep decline prompted the bourse operator to issue the first sidecar order since August 2024, halting program purchasing for five minutes after the KOSPI 200 index shed over 5 percent for more than 1 minute.

The trading volume was notably heavy, with 615.2 million shares worth 10.5 trillion won ($7.16 billion) changing hands. Losers significantly outnumbered winners, with 862 to 68. Foreign investors offloaded 2.09 trillion won worth of local shares, while retail investors and institutions purchased 1.67 trillion won and 253.2 billion won, respectively.

Impact of US Tariffs and China’s Retaliation

The KOSPI’s sharp decline was primarily driven by investors’ growing fears of a recession following the Trump administration’s announcement of reciprocal tariffs last week. This announcement prompted China to retaliate with 34 percent tariffs on U.S. goods and export controls on rare earths, while also threatening additional steps in the near future.

Park Seok-joong, an analyst at Shinhan Securities, commented on the situation, stating, Volatility in the Korean stock markets heightened on the Trump administration’s stronger-than-expected tariff policies. He further added, None of the Korean export industries will be able to evade the influence of the U.S. tariff scheme.

This situation is reminiscent of Wall Street’s worst week since the COVID-19 pandemic last week, with the S&P 500 plunging 6 percent on Friday (U.S. time), while the Dow Jones Industrial Average plummeted 5.5 percent and the tech-heavy Nasdaq composite lost 5.8 percent.

Seoul’s Big-Cap Shares Hit Yearly Low

In Seoul, many big-cap shares slid to hit their lowest mark in a year. Market bellwether Samsung Electronics slid 5.17 percent to 53,200 won, and its chipmaking rival SK hynix shot down 9.55 percent to 164,800 won. Top carmaker Hyundai Motor sank 6.62 percent to 179,100 won, and major defense firm Hanwha Aerospace plunged 8.55 percent to 642,000 won.

Leading shipbuilders Hanwha Ocean and HD Hyundai Heavy plummeted 9.81 percent and 8.17 percent to 62,500 won and 275,500 won, respectively. Major bio company Samsung Biologics lost 5.71 percent to 1.01 million won, and steel giant POSCO Holdings slumped 6.59 percent to 255,000 won. Financial shares also sharply went down, with KB Financial dipping 6.95 percent to 72,300 won and Meritz Financial losing 5.66 percent to 111,700 won.

The local currency was quoted at 1,467.8 won per dollar at 3:30 p.m. local time, down 33.7 won from the previous session. This marked the steepest single-day decline since March 19, 2020, when the currency dropped by 40 won amid the COVID-19 pandemic.

US Tariff Shock Triggers Singapore’s Worst Market Plunge Since 2008, Trails Nikkei

Global markets continued to reel from the economic fallout of sweeping U.S. tariffs, with Singapore and Japan suffering their steepest stock declines in years amid mounting fears of a trade-driven global recession.

Singapore’s Straits Times Index (STI) nosedived 8.7% at the open on Monday, dropping to 3,494.39, marking the worst single-day fall for the benchmark since the 2008 global financial crisis, when it slumped 8.9%. Monday’s fall also exceeded the 8.4% crash during the early days of the Covid-19 pandemic in March 2020.

“According to experts, if tariffs are sustained, they could contribute to higher inflation and slower global growth, which may inurn trigger further volatility and potential sell-offs in markets globally, including Singapore,” said David Gerald, President of the Securities Investors Association (Singapore), as quoted by The Straits Times.

The association said Singapore’s market had shown relative resilience in recent weeks despite the threat of U.S. tariffs, but “ultimately caved in” on Friday following worse-than-expected tariff announcements by President Donald Trump.

On Wednesday, Trump signed an executive order enacting a 10% baseline tariff on all U.S. imports, including goods from Singapore, with higher rates targeting specific countries such as China, Vietnam, and Thailand. The move has intensified concerns that the global economy could tip into recession.

Tokyo Hit by Third-Largest Point Drop on Record

Japan also suffered a dramatic sell-off. The Nikkei 225 plummeted 2,644.00 points, or 7.83%, to close at 31,136.58, marking its third-largest single-day point drop in history. The broader Topix index fell 7.79%, or 193.40 points, ending at 2,288.66.

During early trading, the Nikkei fell as much as 2,843.48 points, or 8.42%, briefly touching 30,937.10—its lowest intraday level since October 2023.

The latest round of tariffs, part of Trump’s “America First” trade policy, includes levies of up to 50% on certain imports and has triggered waves of retaliatory warnings and diplomatic outreach from countries across Asia and beyond.

“This is a sell-anything-that-has-made-money move,” said Rikki Malik, a portfolio manager at Springboard Capital. “Banks [are] at the forefront of that. However, I think we are close to capitulation and will see a bounce very soon.”

Analysts warn that market volatility may persist as investors brace for further economic disruption by the Trump Administration.

Japan’s Nikkei Sinks to 1.5-Year Low Trailing Global Recession Fears

Japan’s Nikkei share average nosedived on Monday to its lowest level in a year and a half, as growing fears of a global recession triggered by sweeping U.S. tariffs sent investors fleeing from equities—particularly bank and tech stocks.

The Nikkei 225 index dropped as much as 8.8% during the day to hit 30,792.74, its lowest level since October 2023, before closing 7.8% lower at 31,136.58. All 225 constituents of the index ended the day in negative territory. The broader Topix index slumped 7.8%, after earlier falling as much as 9.6%.

The sharp sell-off follows U.S. President Donald Trump’s announcement last week of a sweeping new round of reciprocal tariffs, affecting nearly every country exporting to the United States. Speaking aboard Air Force One on Sunday, Trump described the tariffs—which range from 10% to 50%—as “medicine,” and signaled his willingness to tolerate the market fallout.

“It’s extremely difficult to judge how far this stock market correction will run [but] as long as there exists a lack of clarity around tariffs and each country’s response, the market will remain heavy,” said Maki Sawada, equities strategist at Nomura Securities.

The banking sector bore the brunt of the sell-off. A Topix index of banking shares plummeted as much as 17.3% before closing down 10%. Over the past three sessions, Japanese banks have collectively lost nearly a quarter of their market value, amid concerns that the tariffs could choke off global growth and keep domestic interest rates lower for longer.

Among major financial stocks, Nomura Holdings tumbled 13.2%, Mizuho Financial Group fell 10.7%, and Mitsubishi UFJ Financial Group dropped 10.4%. The sell-off extended to the tech sector, with Renesas Electronics plunging 16.7%, Sumco Corp. sliding 15.8%, and chip-testing equipment giant Advantest falling 11%.

The losses follow a broader global market rout. Since Trump’s announcement, the Nikkei has fallen 11.6%, while the U.S. S&P 500 has lost 10.6%. Still, some analysts see room for recovery if Washington or other major economies signal flexibility.

“The market currently is only pricing in bad news,” said Sawada. “If there are signs of flexibility on trade policies or the announcement of economic support measures, it’s highly likely we’ll see a bottom form in the market.”

The sharp decline comes as policymakers across Asia scramble to respond to the rapidly evolving trade environment, with countries like Vietnam, Thailand, and Indonesia turning to diplomacy, and others reconsidering their economic forecasts in light of escalating uncertainty.

Chronology of US Trade Tariffs Unveiled by Trump Admn Since January 2025

As the global countdown begins toward the April 9 deadline for implementation of sweeping U.S. tariffs, diplomatic activity is intensifying across Asia and Latin America, with allies and trade partners scrambling to negotiate exemptions or delays.

President Donald Trump’s April 2 executive order imposing “reciprocal tariffs” of up to 50% on nearly 185 countries has already triggered currency swings, supply chain concerns, and a flurry of diplomatic outreach.

With less than a week left, countries like Vietnam, Thailand, and Indonesia are pursuing urgent talks with Washington — testing the limits of Trump’s protectionist playbook and potentially reshaping the future of U.S. trade alliances.

Below is a chronological summary of several announcements made by Trump since January 2025 after taking office on Jan 20, 2025:

January 2025:

January 22: The Trump Administration hints at potential tariffs on Russia, though specific details were not provided.
January 26: Trump threatens with tariffs of 25% on all Colombian products but were subsequently rescinded.
January 27: The Trump Administration threatens tariffs on copper imports, pending further scrutiny.
January 30: Trump threatens a 100% tariff on all products from BRICS nations (Brazil, China, Egypt, Ethiopia, India, Indonesia, Iran, the United Arab Emirates, Russia, and South Africa) if they push for De-dollarization.
January 31: Scrutiny of of imposing tariffs was extended to integrated circuits and the oil and gas sector, with specifics to be determined.

February 2025:

February 1: Executive Orders 14193, 14194, and 14195 were issued by Trump, imposing tariffs on Canada, Mexico, and China, respectively.
February 3: Executive Orders 14197 and 14198 were signed, further detailing tariffs on Canada and Mexico.
February 10: The administration announced a 25% tariff on steel imports, effective March 12, revoking existing exemptions.
February 11: A 25% tariff on aluminum imports was declared, also effective March 12, with previous exemptions revoked.
February 13: A Presidential Memorandum ordered the development of a “Fair and Reciprocal Plan” to address non-reciprocal trading arrangements.
February 14: President Trump indicated considerations for a 25% tariff on automobiles, potentially starting around April 2.
February 18: Trump threatens 25% tariffs on pharmaceuticals and semiconductors, with expectations of substantial increases over the course of the year.
February 21: The Trump Administration threatens tariffs on Austria, France, Spain, Turkey, and the United Kingdom, possibly renewing Section 301 investigations to address digital services taxes.
February 25: A Section 232 investigation into copper imports was initiated, with a report due by November 22, 2025.
February 26: A Section 232 investigation into timber, lumber, and derivative products was launched, with findings expected by November 26, 2025.
February 27: The Office of the U.S. Trade Representative publishes the 2025 Trade Policy Agenda, outlining the administration’s vision for trade.

March 2025:

March 2: President Trump announces a temporary allowance for U.S. imports from Mexico and Canada to continue enjoying the de minimis provision, pending further notification.
March 4: Tariffs on Canada and Mexico become effective, with Canada facing 10% on energy resources and 25% on all other products, and Mexico subjected to a 25% tariff on all products.
March 24: Trump signs an Executive Order imposing tariffs on countries importing Venezuelan oil.

April 2025:

April 2: President Trump announces sweeping “reciprocal tariffs” on 185 countries, with a baseline rate of 10% and a maximum of 50%, affecting both adversaries and key allies in Europe and Asia. China faces an additional 34% tariff, the European Union 20%, Japan 24%, India 27% and Vietnam 46%. These tariffs were set to take effect on Wednesday, April 9, 2025.
April 2: China announces retaliatory tariffs of 34% on all U.S. goods, effective April 10, 2025.
April 3: Global stock markets crash across Asia and other parts due to concerns over the escalating trade tensions.
April 3: Goldman Sachs raises the probability of a U.S. recession from 35% to 45%, citing the potential impact of the tariffs on economic growth.
April 4: Bill Ackman, the billionaire investor urges for a 90-day suspension of the tariffs, warning of an “economic nuclear winter” if the tariffs were implemented as planned on April 9, 2025.
April 7: President Trump reiterates his resolve to the tariff strategy, describing the measures as “medicine” necessary to address trade imbalances, despite market crashing across Asia, Europe and even the Wall Street.

These actions reflect the administration’s resolve to go ahead with tariffs across various sectors and countries despite recession fears and market declines.