Trump indicates new tariffs on semiconductor chips, computers

US President Donald Trump on Sunday 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.

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.

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.

Considers pausing auto levies

Trump suggested that he might temporarily exempt the auto industry from tariffs he previously imposed on the sector, to give carmakers time to adjust their supply chains.

“I’m looking at something to help some of the car companies with it,” Trump told reporters gathered in the Oval Office.

The Republican president said automakers needed time to relocate production from Canada, Mexico and other places. The statement hinted at yet another round of reversals on tariffs as Trump’s onslaught of import taxes has panicked financial markets.

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