Tariffs on chips ‘coming soon’

US PRESIDENT Donald Trump at the weekend said he would be announcing the tariff rate on imported semiconductors over the next week, adding that there would be flexibility with some companies in the sector.

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The president's pledge means that the exclusion of smartphones and computers from his reciprocal tariffs on China likely will be short-lived as Trump looks to reset trade in the semiconductor sector.

“We wanted to uncomplicate it from a lot of other companies, because we want to make our chips and semiconductors and other things in our country,’ Trump told reporters aboard Air Force One as he travelled back to Washington from his estate in West Palm Beach.

Trump declined to say whether some products such as smartphones might still end up being exempted, but added: “You have to show a certain flexibility. Nobody should be so rigid”

Earlier in the day, Trump announced a national security trade probe into the semiconductor sector.

“We are taking a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN in the upcoming National Security Tariff Investigations,” he posted on social media.

The White House had announced the exclusions from steep reciprocal tariffs last week, creating some hope that the tech industry might escape being ensnared in the escalating conflict between the two nations and that everyday consumer products such as phones and laptops would remain affordable.

However, Trump’s commerce secretary, Howard Lutnick, earlier at the weekend made clear that critical technology products from China would face separate new duties along with semiconductors within the next two months.

Trump’s back-and-forth on tariffs last week triggered the wildest swings on Wall Street since the Covid pandemic of 2020. The benchmark Stand-