U.S. President Donald Trump has revealed plans to introduce new import levies on semiconductors within the coming week, signaling an intensification of his administration’s push to restructure trade practices in the technology sector. This announcement comes amid ongoing friction with China and growing unease in financial markets.

Although Trump indicated that some firms may receive exemptions, he also suggested that previous exclusions—such as those for smartphones and personal computers—may not remain in place for long. Speaking to reporters aboard Air Force One during his return from West Palm Beach, Florida, Trump explained, “We didn’t want to entangle these with many other firms because our aim is to bring the production of semiconductors and electronics back to the United States.” When asked if devices like smartphones might still avoid tariffs, he responded, “Flexibility is necessary. No one should be inflexible.”

Semiconductor Industry Faces National Security Review

Trump’s remarks came shortly after he announced a fresh investigation targeting the semiconductor industry and its broader supply chain. In a social media update, he confirmed the probe will scrutinize the entire electronics manufacturing network, citing national security concerns.

“We are conducting a comprehensive review of semiconductors and the FULL ELECTRONICS SUPPLY CHAIN under our upcoming National Security Tariff Investigations,” he posted.

This latest move forms part of Trump’s broader strategy to reduce U.S. reliance on foreign technology components and incentivize domestic manufacturing. Just days earlier, the White House released a list of items temporarily spared from the sweeping retaliatory tariffs—creating a brief sense of relief for the tech sector. However, Trump’s latest comments suggest those exclusions may soon expire.

Additional Tariffs to Target Tech and Pharma Imports

Commerce Secretary Howard Lutnick added further details in a Sunday interview, stating that the administration plans to roll out specialized tariffs within the next two months. These duties will apply to semiconductors, pharmaceutical products, and a range of tech items such as computers and smartphones. Unlike the broader tariffs already imposed on Chinese goods, these new levies will specifically target strategic sectors.

“He’s excluding them from the general reciprocal tariffs,” Lutnick explained on ABC’s This Week, “but these products will still be included in the upcoming sector-specific semiconductor tariffs, expected to take effect in the next month or two.” He also emphasized that the goal is to bring manufacturing of these goods back to American soil.

Beijing Responds with Tariff Increase

In response to the escalating trade actions, China increased its own tariffs on American imports to 125% last Friday, mirroring U.S. measures. On Sunday, Chinese officials said they were still assessing the impact of the recent exclusions granted by the U.S. government. In a carefully worded statement, the Chinese Ministry of Commerce said, “Only the one who tied the bell around the tiger’s neck can remove it,” implying the U.S. must take responsibility for the current trade conflict.

Financial Markets Rattle as Policy Uncertainty Grows

Trump’s fluctuating stance on trade has stirred significant turmoil on Wall Street. U.S. stocks experienced extreme volatility last week, with market swings not seen since the early days of the COVID-19 pandemic. Since Trump assumed office on January 20, the S&P 500 index has dropped by over 10%, reflecting deepening investor concern.

Billionaire hedge fund manager Bill Ackman, an early supporter of Trump’s campaign but a vocal critic of his tariff approach, urged the President to reconsider. On social media, Ackman called for a 90-day suspension of the China-specific tariffs and proposed a temporary reduction to 10%, arguing that this would still incentivize companies to shift their supply chains without causing unnecessary economic harm.

“If Trump paused the tariffs for three months and cut them down to 10%, he could accomplish the same goal—encouraging businesses to move away from China—without causing disruption and risk,” Ackman posted.

Confusion Over Administration Messaging Sparks Criticism

The administration’s inconsistent messaging on tariffs has frustrated both investors and business leaders. Market analyst Sven Henrich, founder of NorthmanTrader, took to X (formerly Twitter) to express his displeasure. “The market would rally the moment Lutnick gets fired,” he wrote. “The White House needs to decide who controls its messaging—right now, it changes daily. No company can plan when policies flip so frequently.”

Prominent Democratic Senator Elizabeth Warren also condemned the shifting policies, describing them as disorganized and ethically questionable. “This isn’t a real tariff strategy—it’s chaos and corruption,” Warren stated on ABC’s This Week, just before Trump made his latest public remarks.

On Friday evening, the U.S. Customs and Border Protection agency published a list of 20 product categories exempted from immediate tariffs. This list includes items like laptops, memory chips, flat-panel displays, disc drives, and semiconductor components. But based on recent developments, many of these same products may soon be targeted by new tariffs designed specifically for the semiconductor and electronics sector.

U.S. Pursuing Trade Talks with Allies—But Not China

White House trade adviser Peter Navarro, appearing on NBC’s Meet the Press, said the administration remains open to negotiations but focused on building partnerships with allies. He named the United Kingdom, the European Union, India, Japan, South Korea, Indonesia, and Israel as nations currently in talks with the U.S. China, however, was noticeably absent from this list. Navarro also accused Beijing of playing a role in the illegal fentanyl supply chain.

U.S. Trade Representative Jamieson Greer reiterated on CBS’s Face the Nation that there are no scheduled discussions between Trump and Chinese President Xi Jinping regarding the tariffs. Greer argued that Beijing escalated tensions by retaliating with its own levies and asserted that the U.S. aims to finalize agreements with other countries in the coming weeks.

“My objective is to lock in meaningful deals within 90 days, and we’re making solid progress with several countries,” Greer said.

Economic Risks Mount as Recession Fears Rise

Billionaire investor Ray Dalio, founder of the world’s largest hedge fund, expressed concern that the tariff war could trigger a severe economic downturn. Speaking on Meet the Press, Dalio warned that the country stands at a critical economic crossroad.

“We are nearing a major decision point and are on the brink of a recession,” Dalio stated. “And if this situation is mismanaged, we could end up with something far worse than just a downturn.”