Tarrifs on Chinese Made Electronics- Yes or No?

Trump walked back the tariffs on Chinese made electronics late last week, but, today, perhaps, not.

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Commerce Secretary Howard Lutnick walked back the recent reciprocal tariff exemption on select electronics announced in an April 12 bulletin from the United States Customs and Border Protection.

On April 13, Lutnick told ABC News that the reciprocal tariff exemption was temporary until the administration established a sector tariff regime for semiconductor products, which includes phones, graphics processors, and computing chips in a “month or two.” Lutnick added:

“President Trump has called out pharmaceuticals, semiconductors, and autos. He called them sector tariffs, and those are not available for negotiation. They are just going to be part of making sure we ensure core national security items are made in this country.”

Clarification of Exceptions Under Executive Order 14257 of April 2, 2025, as Amended

SUBJECT:       Clarification of Exceptions Under Executive

Order 14257 of April 2, 2025, as Amended
 

In Executive Order 14257 of April 2, 2025 (Regulating Imports With a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits), I declared a national emergency arising from conditions reflected in large and persistent annual U.S. goods trade deficits, and imposed additional ad valorem duties that I deemed necessary and appropriate to deal with that unusual and extraordinary threat, which has its source in whole or substantial part outside the United States, to the national security and economy of the United States.

In Executive Order 14257, I stated that certain goods are not subject to the ad valorem rates of duty under that order.  One of those excepted products is “semiconductors.”  The subsequent orders issued in connection with Executive Order 14257 — i.e.,  Executive Order 14259 of April 8, 2025 (Amendment to Reciprocal Tariffs and Updated Duties as Applied to Low-Value Imports from the People’s Republic of China), and the Executive Order of April 9, 2025 (Modifying Reciprocal Tariff Rates to Reflect Trading Partner Retaliation and Alignment), (Subsequent Orders) — incorporate the exceptions in Executive Order 14257, including for “semiconductors.”

That term’s meaning includes the products classified in the following headings and subheadings of the Harmonized Tariff Schedule of the United States (HTSUS):

·       8471

·       847330

·       8486

·       85171300

·       85176200

·       85235100

·       8524

·       85285200

·       85411000

·       85412100

·       85412900

·       85413000

·       85414910

·       85414970

·       85414980

·       85414995

·       85415100

·       85415900

·       85419000

·       8542

To the extent that the HTSUS does not currently fully reflect the products listed above as excepted from the ad valorem duties imposed under Executive Order 14257 and the Subsequent Orders, the HTSUS shall be modified by inserting in numerical order the headings and subheadings listed above into subdivision (v)(iii) of U.S. note 2 to subchapter III of chapter 99, effective as of 12:01 a.m. eastern daylight time on April 5, 2025.  Any duties that were collected at or after 12:01 a.m. eastern daylight time on April 5, 2025, pursuant to Executive Order 14257 and the Subsequent Orders, on imports that are excepted under Executive Order 14257 and the Subsequent Orders because they are “semiconductors,” as explained in this memorandum, shall be refunded in accordance with U.S. Customs and Border Protection’s standard procedures for such refunds.

As explained in Executive Order 14257 and the Subsequent Orders, the Secretary of Commerce and the United States Trade Representative, in consultation with the Secretary of State, the Secretary of the Treasury, the Secretary of Homeland Security, the Assistant to the President for Economic Policy, the Assistant to the President for National Security Affairs, the Senior Counselor to the President for Trade and Manufacturing, and the Chair of the United States International Trade Commission, are authorized to employ all powers granted to the President by the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) as may be necessary to implement Executive Order 14257 and the Subsequent Orders.  Measures taken to implement Executive Order 14257 and the Subsequent Orders shall be done in accordance with this memorandum.

                              DONALD J. TRUMP

It’s an ever changing policy