In a dramatic turn just days after an apparent tariff exemption, U.S. President Donald Trump has declared that Chinese-made smartphones and other electronics may still face heavy tariffs. This development follows a previous announcement by Commerce Secretary Howard Lutnick suggesting those items had been temporarily spared.
While markets initially reacted positively to the reported exemptions — with stock prices climbing in both the U.S. and Europe — Trump’s latest remarks have thrown investors off balance. According to him, the goods weren’t exempted but were simply reclassified into a different tariff category.
Despite the confusion, Apple’s stock gained 2.9%, thanks to the temporary market optimism. The company relies heavily on China, with around 80% of its iPhones sold in the U.S. being made there.
Trump’s tough trade stance has already seen Chinese imports slapped with a massive 145% tariff, prompting Beijing to retaliate with 125% tariffs on American goods. As a result, U.S. stock markets initially rallied on Monday: Nasdaq rose 2%, the S&P 500 climbed 1.2%, and the Dow Jones gained 0.9%. Nvidia, the chip-making giant, also saw a 1.2% uptick.
Still, global markets remain shaken. Since Trump’s April 2 “Liberation Day” tariff announcement, major indexes have yet to recover fully. Over the past month, the S&P 500 is down by 3.8%, the FTSE 100 by 5.7%, Germany’s DAX by 8.8%, and France’s CAC 40 by 9.3%.
A U.S. customs notice on Saturday had raised hopes by listing smartphones, computers, and other electronics as exempt from the 145% levy. But Trump took to social media to deny this, calling the reports false and reiterating that those items are simply moving to another tariff “bucket.”
He further hinted at a deeper crackdown on the tech industry, saying a new round of National Security Tariff Investigations would focus on semiconductors and the broader electronics supply chain. He promised more updates on semiconductor tariffs soon.
The uncertainty is already impacting global pricing. On Monday, Sony announced a 10% price hike for its PlayStation 5 console across Europe, Australia, and New Zealand, blaming inflation and unstable exchange rates. Interestingly, prices in the U.S. remain unchanged.
China’s commerce ministry dismissed the supposed exemptions as a mere “small step,” and signaled it’s still evaluating the impact. Meanwhile, fears of renewed tariff wars are dampening hopes for any meaningful progress in U.S.-China trade relations.
Trump maintains that these aggressive tariff strategies are designed to fix what he sees as an unfair global trading system — aiming to bring jobs and manufacturing back to American soil. However, critics argue that the resulting market volatility threatens global trade and economic stability.
What’s your take on Trump’s tariff flip-flop? Could this impact smartphone prices in Nigeria too? Share your thoughts in the comments below and stay updated with NIGPOST for more global business news that matters to you.
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