Commerce Secretary Howard Lutnick has clarified that the recently announced reciprocal tariff exemption on select electronics is only temporary, countering assumptions that it marked a broader shift in U.S. trade policy.
In an interview with ABC News, Lutnick stated that the exemption—first announced on April 12 by U.S. Customs and Border Protection—will remain in place until the Biden administration finalizes a new sector-based tariff regime targeting semiconductor-related products. These include smartphones, computing chips, and graphics processors.
“The President has identified pharmaceuticals, semiconductors, and automobiles as national security priorities. These sectors will face non-negotiable tariffs,”
Lutnick said.
“We are not going to rely on China for essential goods. Our medicine and chips must be made in America.”
Lutnick’s remarks underscore the administration’s focus on onshoring critical industries and shifting trade policies away from short-term negotiation tools toward long-term geostrategic measures. This signals that tariffs could remain a central feature of U.S. economic defence rather than a temporary tactic to boost exports.
Markets have reacted sharply to the tariff drama. Following initial speculation of a 90-day reciprocal tariff pause, stocks and cryptocurrencies surged, with over $2 trillion flowing into markets in hopes of eased trade tensions. However, this momentum quickly reversed after President Trump dismissed the pause rumours as “fake news.” Ironically, a formal tariff pause was confirmed days later.
Meanwhile, market volatility spiked across the board. According to Bloomberg analyst Eric Balchunas, the S&P 500’s volatility index surged to 74 in April—surpassing Bitcoin’s volatility reading 71. This marked the first time the equity index appeared more volatile than the leading cryptocurrency.
Meanwhile, Hashlabs Mining CEO Jaran Mellerud explained that the newly imposed tariffs, which drive up import costs, are making mining equipment far less affordable in the U.S. As a result, manufacturers are expected to focus on international markets where prices remain more competitive. “Ironically, while rig prices climb in the U.S., we could see them fall elsewhere,” Mellerud observed. “Demand for shipping equipment to the U.S. is expected to nosedive, possibly approaching zero.”
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