Trump Vows National Security Probe Into Semiconductor Sector Amid Tariff Changes

WASHINGTON, D.C. — President Donald Trump announced a national security investigation into the semiconductor sector on Sunday, stating that no one would be exempt from potential tariffs on electronic imports from China. This revelation comes as the U.S. plans to review its trade policies amidst ongoing tensions with Beijing.

In a post on his social media platform, Trump expressed that recent exemptions for smartphones, laptops, and other electronic products from import tariffs are only temporary. “There was no Tariff ‘exception’,” he wrote, emphasizing that these products remain subject to existing tariffs. He also declared, “We will not be held hostage by other Countries, especially hostile trading Nations.”

Following this announcement, the White House is expected to implement new tariffs on critical technology products from China, including semiconductors, within the next two months. Trump’s commerce secretary, Howard Lutnick, highlighted that a special type of tariff would apply to electronics and would be distinct from the reciprocal tariffs currently in place.

Lutnick noted in an interview with ABC that Trump’s plans would likely lead to an increase in U.S. production of these critical technologies. “These are things that are national security, that we need to be made in America,” he said.

As a result of the tariff changes, U.S. stock markets saw a sharp response. Shares in major companies like Apple and Nvidia were on course to rise after the 90-day exemption announcement for their imported products. However, the long-term impact of these tariff policies remains uncertain.

China’s Commerce Ministry responded to the exemptions, calling them a small step toward correcting the U.S.’s unilateral approach to trade and urged Washington to eliminate the entire tariff regime. Zhang Li, president of the China Center for Information Industry Development, remarked that the exemptions underscored China’s importance to U.S. tech companies reliant on Chinese manufacturing and innovation.

Despite the exemptions, tension continues. China’s leader Xi Jinping warned that protectionist policies lead nowhere and stressed that a trade war would result in no winners. In recent months, U.S. tariffs on Chinese imports have soared to 145%, compounding the economic standoff between the two nations.

Economic analysts expressed concern over the impacts of Trump’s tariff strategy, especially in the wake of tax increases that could stifle growth and contribute to rising inflation. Senator Elizabeth Warren criticized the administration’s approach, stating on ABC’s “This Week” that “there is no tariff policy — only chaos and corruption.”

Trump’s fluctuating stance on tariffs has led to significant volatility in the U.S. markets, triggering the wildest swings on Wall Street since the onset of the COVID-19 pandemic. The S&P 500 index has declined over 10% since Trump took office on January 20, exacerbating concerns about the U.S. economy.

As China seeks to strengthen relationships with neighboring countries amid the ongoing trade conflict, U.S. officials are keeping a close watch on these developments while they prepare the next phase of their tariff strategy.