By Staff Reporter, Author at 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%.

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.

Thailand Ramps Up Imports, Indonesia Opts for Talks as US Tariffs Hit Southeast Asia

Thailand and Indonesia are taking markedly diplomatic approaches to the Trump administration’s sweeping new trade tariffs, as Southeast Asian nations scramble to respond to U.S. import duties that could significantly impact regional exports.

Thai Prime Minister Paetongtarn Shinawatra announced Sunday that Thailand will ramp up imports of U.S. energy, aircraft, and agricultural products in a bid to mitigate the fallout from a new 36% tariff on Thai goods entering the American market.

In remarks carried by Thai PBS, Shinawatra emphasized Thailand’s intent to maintain strong bilateral ties despite the steep levies, which she warned could hit major export categories such as electronics, processed foods, and agricultural commodities.

“We remain committed to a constructive economic partnership with the United States,” she said, adding that Thailand would also encourage Thai firms to invest more in the U.S. and ease existing import restrictions on American goods.

Thailand’s Finance Minister Pichai Chunhavajira is expected to travel to Washington in the coming days to lead high-level discussions with U.S. officials and private sector stakeholders.

Indonesia Harps on Diplomacy

Neighboring Indonesia also signaled its preference for diplomacy after the U.S. imposed a 32% tariff on Indonesian exports. Coordinating Minister for Economic Affairs Airlangga Hartarto told Antara News that Jakarta will pursue negotiations with the U.S. to address the situation.

“We are not planning retaliatory measures at this time,” Hartarto said. “Our focus is on finding a mutually beneficial outcome through dialogue.”

The new tariffs are part of a broader trade strategy unveiled by President Donald Trump last week under the banner of “Liberation Day,” which imposed duties ranging from 10% to 50% on imports from more than 180 countries. While the U.S. says the move is meant to protect domestic industries, critics warn it could spark a wider trade conflict.

Both Thailand and Indonesia are key U.S. trading partners in Southeast Asia, and their tempered responses reflect a broader regional strategy of maintaining access to the U.S. market while avoiding escalation.

More updates to follow as talks progress and other nations respond.

Nissan Halts U.S. Orders for Mexico-Built Infiniti SUVs

Nissan has suspended all new U.S. orders for its Mexican-built Infiniti SUVs following the implementation of sweeping new U.S. auto tariffs, marking one of the first major manufacturer pullbacks triggered by President Donald Trump’s 25% levy on foreign-made cars and trucks.

In a statement Thursday, the Japanese automaker confirmed it will no longer accept U.S. orders for the Infiniti QX50 and QX55 SUVs, both produced at the COMPAS plant in Aguascalientes, Mexico — a joint venture with Mercedes-Benz. “Production will continue for other markets,” a Nissan spokesperson said, citing Canada and the Middle East, but no new U.S. orders will be taken for the two models.

The move underscores the immediate disruption caused by Trump’s tariffs, which went into effect at midnight Thursday. Nissan is particularly exposed, exporting more vehicles from Mexico to the U.S. than any other Japanese automaker.

At the same time, Nissan reversed plans to scale down production at its U.S. plant in Smyrna, Tennessee, saying it will maintain two production shifts for its Rogue SUV despite an earlier plan to cut one shift this month.

The automaker, already grappling with an aging lineup and limited hybrid offerings, has slashed profit forecasts three times in the past year and recently saw its credit rating fall to junk status. The new tariffs may further squeeze margins on its North American operations. “This is a significant blow to Nissan’s U.S. strategy and could have ripple effects across its North American supply chain,” said one industry analyst.

The COMPAS plant, which also produces the Mercedes-Benz GLB SUV, may face broader operational questions if the U.S. tariff regime persists.

Newly appointed Nissan CEO Ivan Espinosa, a Mexican national, has vowed to streamline vehicle development and restore profitability — but the U.S. tariff shock now adds a new layer of urgency.

PM Ishiba Urges Calm, Vows Support for Kaishas as US Tariffs Hit Japan

As the impact of U.S. tariffs begins to ripple through the Japanese economy, Prime Minister Shigeru Ishiba has pledged to push back against the levies while rolling out emergency support for affected industries — but warned local businesses that relief may take time.

Speaking before parliament on Monday, Ishiba said Tokyo will continue urging U.S. President Donald Trump to reconsider his decision to impose sweeping tariffs on Japanese imports, including a 25% duty on automobiles and a 24% tariff on other goods.

“We will ask the United States to reverse these measures,” Ishiba told lawmakers. “But this won’t be resolved overnight. In the meantime, the government must act swiftly to protect jobs and stabilize our local economy.”

The announcement follows a steep 9% plunge in the Nikkei 225 index early Monday, driven by fears of a global recession. Economic analysts have warned that the new tariffs could shave nearly 0.8% off Japan’s GDP, with major exporters and local manufacturers likely to feel the pressure first.

Ishiba, who returned Sunday night from a late meeting with his top economic team, has instructed ministers to explore funding assistance for affected companies, particularly small and mid-sized businesses in Tokyo, Nagoya, Osaka, and other industrial hubs.

“We will not stand by and watch our communities suffer,” Ishiba said. “Our response will include targeted financial aid, workforce protections, and emergency trade measures where necessary.”

Residents in auto-producing regions such as Aichi Prefecture and Tochigi have expressed concern over potential job cuts and production slowdowns. Local government officials are expected to coordinate with national ministries to assess the impact and prepare assistance packages.

The Prime Minister also left the door open for a face-to-face meeting with President Trump in Washington, hinting that Tokyo may offer a cooperative economic package to restart talks.

“But any negotiation must be grounded in fairness and mutual respect,” Ishiba added. “Japan has done nothing to warrant such punitive trade actions.”

With tensions rising and markets jittery, local businesses and consumers alike are bracing for potential price increases and reduced exports. The national government is expected to announce initial relief measures later this week.

China Holds Yuan Line as Trump Tariffs Jolt Asian Markets

As fresh U.S. tariffs send shockwaves through global and Asian markets, China’s central bank has remained to keep its currency stabile over a sharp devaluation — for now. On Monday, the People’s Bank of China (PBOC) set the yuan’s daily midpoint at 7.1980 per U.S. dollar, a four-month low, but crucially still shy of the symbolic 7.2 threshold.

Trump’s announcement last week of a 34% tariff on Chinese imports triggered immediate volatility, with the offshore yuan tumbling to 7.349 before partially rebounding. But the PBOC’s restrained response indicates a strategic calculation: signal strength, not surrender.

“Emerging market currencies are under heavy pressure from U.S. tariff shocks, and today’s fixing reflects that,” said Ding Shuang, chief Greater China economist at Standard Chartered. “But holding the line at 7.2 shows the central bank is prioritising yuan stability over short-term retaliation.”

The yuan’s performance is now being closely watched as both an economic indicator and a political message. Analysts see the currency as a key bargaining chip in Beijing’s broader trade strategy. A deeper devaluation could cushion exporters hit by tariffs — but it also risks triggering capital outflows, investor panic, and renewed accusations of currency manipulation from Washington.

“There’s a gap between the offshore rate and the official fixing,” said Chen Zhiwu, chair professor of finance at the University of Hong Kong. “But the controlled depreciation suggests the PBOC wants to keep the yuan as a steady anchor in turbulent waters.”

China responded to Trump’s latest tariffs with an equivalent 34% levy on U.S. goods and new restrictions on select American firms. Yet despite rising tension, the PBOC has repeatedly stressed that preventing “exchange rate overshooting” remains a top priority.

“If talks resume, a stable yuan gives China leverage,” Chen added. “And if progress is made, a slight appreciation could be used as a goodwill gesture.”

For now, the message from Beijing is clear: even amid trade war tremors, China is keeping the yuan firmly under control — though how long that restraint holds may depend on Washington’s next move.

‘Market Speaks’: China Blasts US Tariffs After Stocks Nosedive, Urges Dialogue

China issued a pointed response to sweeping new U.S. tariffs on Saturday, condemning the measures as economically reckless and politically damaging, while pointing to the global market selloff as proof of their destabilizing impact.

With stock markets around the world sliding sharply—Wall Street saw its worst week since the pandemic—Beijing warned Washington against using trade as a geopolitical weapon. The Chinese foreign ministry said the reaction from investors sent a clear message: “The market has spoken.”

Chinese Foreign Ministry spokesperson Guo Jiakun in a social media post accompanied by images of the week’s market rout, said:“Now is the time for the U.S. to stop making wrong choices.”

The escalating trade tensions stem from President Donald Trump’s latest round of 34% tariffs on Chinese imports, raising total duties on Chinese goods this year to 54%. The move also included shutting down a loophole that allowed small parcels from China to enter the U.S. untaxed.

Beijing Hits Back Hard

In retaliation, Beijing imposed mirror tariffs on U.S. exports and introduced restrictions on select rare earth materials, adding fuel to a trade conflict already straining the world’s two largest economies. These countermeasures triggered a steep global selloff, with the S&P 500 closing down 9% for the week.

In a statement carried by Xinhua, China’s state-run news agency, officials called the U.S. actions a threat to global economic stability and a violation of the principles underpinning international trade. “Tariffs should not be tools of suppression,” the statement read. “The United States must cease undermining China’s right to pursue legitimate development.”

China pledged to “take all necessary steps” to defend its sovereignty and development interests, adding that it would not hesitate to act again if provoked.

Hong Kong Stays Neutral

Chinese trade associations representing key sectors—including metals, electronics, textiles, and agriculture—issued coordinated statements denouncing the tariffs. Food industry leaders urged exporters to strengthen internal cooperation and pivot to new markets across Asia, Africa, and Latin America.

Meanwhile, Hong Kong’s Financial Secretary Paul Chan said the city would not impose any retaliatory measures of its own, stressing its position as a free port and open economy. “Maintaining the free flow of capital and goods is our core advantage,” Chan said in an interview with RTHK. “We remain committed to a rules-based global trade system.”

Otherwise, for now, the global response is clear: rising tariffs, deepening divides, and markets in freefall — with no resolution in sight.

Netanyahu Rushes to Meet Trump After 17% Tariffs Imposed on Israeli Goods

Israeli Prime Minister Benjamin Netanyahu is expected to meet U.S. President Donald Trump on Monday to discuss the recently announced tariffs. This impromptu visit, as reported by three Israeli officials and a White House official, could mark the first by a foreign leader to negotiate a deal to remove tariffs.

The surprise invitation by Trump came during a phone call on Thursday with Netanyahu, who is currently visiting Hungary. The Israeli leader raised the tariff issue during the call, prompting the U.S. President to extend an invitation for an in-person meeting.

However, Netanyahu’s office has yet to confirm the visit, which is also likely to include discussions on Iran and Israel’s ongoing conflict with the Palestinian militant group Hamas in Gaza. The new tariff policy announced by Trump imposes a 17% tariff on unspecified Israeli goods exports to the United States. This move could significantly impact Israel’s exports of machinery and medical equipment, according to an Israeli finance ministry official.

Global Trade Landscape Amid Tariff Tensions

The U.S. is Israel’s closest ally and largest single trading partner, and this new policy could strain the longstanding trade relationship between the two countries. In response to the U.S. tariff policy, Israel had already moved to cancel its remaining tariffs on U.S. imports on Tuesday. The two countries had signed a free trade agreement 40 years ago, and about 98% of goods from the U.S. are now tax-free in Israel.

The global trade landscape is also being reshaped by other countries’ reactions to Trump’s tariffs. For instance, Jaguar Land Rover has paused shipments to the U.S. as Trump’s tariffs come into force. Similarly, Nissan Motor is considering shifting some domestic production of U.S.-bound vehicles to the U.S. to mitigate the impact of Trump’s tariffs.

In Europe, Italy’s economy minister Giancarlo Giorgetti warned against the imposition of retaliatory tariffs on the United States in response to Trump’s tariff announcement. He called for a de-escalation with the U.S., highlighting the potential damage that a policy of counter-tariffs could cause.

The tariff announcement has sent shockwaves through global stock markets, wiping out $5tn in stock market value for S&P 500 companies by Friday’s close, a record two-day decline. Prices for oil and commodities plunged, while investors fled to the safety of government bonds.

The current situation has increasingly been resonating the 1930s, when the U.S. imposed the Smoot-Hawley Tariff Act, which raised tariffs on over 20,000 imported goods. This move was met with retaliatory tariffs from other countries, leading to a significant reduction in global trade and contributing to the severity of the Great Depression.

However, Trump remains unrepentant, stating that his policies will never change. The 78-year-old Republican, who was spending a long weekend golfing at his course in Palm Beach, Florida, is banking on the theory that the might of the world’s biggest economy will force foreign companies to manufacture on U.S. soil, rather than continue to import goods.

Otherwise, the impromptu meeting between Netanyahu and Trump could have far-reaching implications for global trade. The outcome of their discussions could either escalate or de-escalate the current trade tensions, with potential impacts on economies worldwide.

Wary India Alerts Authorities of Possible Dumping of Cheaper Chinese Goods Post-US Tariff Surge

India has intensified its monitoring of imports from China to guard against a potential flood of cheap goods into its market, following the United States’ dramatic tariff escalation on Chinese exports.

The U.S. hike—part of a sweeping trade overhaul unveiled by former President Donald Trump—has raised tariffs on Chinese goods by an additional 34 per cent, taking the total duty to 54 per cent. The move has significantly narrowed China’s access to the world’s largest consumer market, prompting concerns that surplus goods may be diverted to other major economies, including India, at dumped prices.

Commerce Secretary Sunil Barthwal has reportedly convened several high-level meetings to assess the situation. “We are actively engaging with industry stakeholders to get a comprehensive understanding of potential risks and are developing a strategic response,” a senior government official told IANS.

The Commerce Ministry has already been vigilant in sectors such as steel, where earlier U.S. tariffs had led to a surge in Chinese exports to other countries. Officials have now expanded the scope of surveillance to electronics, textiles, chemicals, and other sensitive sectors that could be vulnerable to dumping.

China’s Potential Redirection of Exports

With Chinese exporters now facing steep barriers in the U.S., Indian authorities fear that Beijing may attempt to offload its excess inventory at artificially low prices to maintain factory output—an act considered dumping under global trade norms.

“This is a classic case where trade diversion could lead to market distortions. We must ensure that Chinese overcapacity does not destabilize Indian industries,” the official said.

China, meanwhile, has retaliated against the U.S. tariffs with countermeasures including 34 per cent duties on all American goods, restrictions on rare earth metal exports, and sanctions on select U.S. defence-related companies.

India’s own exports to the U.S. account for only 4 per cent of its GDP, and the new 27 per cent U.S. tariff on Indian goods is expected to have a “limited impact,” according to an SBI Research report. In fact, the relatively lower tariff rate on Indian goods—compared to 34 per cent on China, 36 per cent on Thailand, and 46 per cent on Vietnam—may boost India’s long-term competitiveness in global markets.

The report noted that in electronics, where China now faces U.S. tariffs ranging from 54 per cent to 79 per cent, India could emerge as a preferred export partner. India shipped $9 billion worth of electronics to the U.S. between April and December in FY25, making it the country’s top export sector to the U.S.

However, short-term challenges remain, especially in textiles, where higher tariffs on competitors like Bangladesh, China, and Vietnam could initially lead to demand compression. India exported $7 billion worth of textiles to the U.S. in the same period, and while the sector may experience a temporary setback, experts believe it stands to gain in the medium to long term.

As global trade dynamics shift rapidly, India’s proactive stance underscores the need to protect domestic industries from unfair competition. Government agencies are expected to increase customs checks, evaluate import pricing patterns, and, if needed, initiate anti-dumping investigations.

Industry bodies have welcomed the government’s vigilance, emphasizing the importance of balancing open trade with protective mechanisms. “We support global trade but not at the cost of India’s manufacturing ecosystem,” said a representative from a leading industry federation.

As China recalibrates its export strategies under growing global pressure, India remains on high alert—not just to shield its markets, but potentially to seize emerging trade opportunities.