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Impact of Trump’s Tariff Decisions on Major US Tech Companies
Following the recent announcement of reciprocal tariffs by former President Donald Trump, shares of key technology firms, notably Apple, experienced significant declines. Over a brief period, Apple saw its market valuation decrease by approximately $700 billion, marking one of Wall Street’s most notable financial setbacks.
In a recent statement, Trump indicated he might consider exempting certain US companies from the imposed tariffs but emphasized that these decisions would be made on an “instinctive” basis.
Chad Bown, a senior fellow at the Peterson Institute for International Economics, drew parallels between the current exemptions and those implemented during Trump’s earlier trade conflicts in 2018 and 2019, specifically concerning smartphones and consumer electronics.
“It remains to be seen if these current exemptions will be maintained or if the president will change direction again in the near future,” Bown stated, highlighting the unpredictability of trade policy under Trump.
Inquiries regarding the tariff regulations were directed from the US Customs and Border Protection to the US International Trade Commission, which has not yet responded to these requests.
The White House has clarified that the new exemptions will not affect the 20 percent tariffs imposed on all Chinese imports, a move linked to concerns over China’s involvement in fentanyl production.
White House spokesperson Karoline Leavitt noted that companies such as Apple, TSMC, and Nvidia are actively working to relocate their manufacturing operations back to the United States, adhering to the President’s directive. “Trump has stressed the importance of reducing reliance on China for the production of critical technologies like semiconductors, chips, and consumer electronics,” Leavitt explained.
Apple has not provided any comments regarding the situation.
Economists have raised alarms over the widespread implications of Trump’s tariffs, which cover a vast assortment of everyday US consumer products. Concerns are mounting that these tariffs could exacerbate inflationary pressures in the US economy and hamper economic growth.
John Williams, the Chief of the New York Federal Reserve, indicated that US inflation might escalate to as high as 4 percent due to the ramifications of these tariffs.
Additional reporting contributed by Michael Acton from San Francisco.
Source
arstechnica.com