Trade Tensions Escalate as Trump Targets Tech Tariffs

U.S. Commerce Secretary Howard Lutnick announced new tariffs on smartphones and computers, aiming to shift production to the U.S., affecting the already volatile trade dynamics with China, as President Trump continues to reshape global trade policies, stirring criticism and economic concerns domestically and abroad.

In a fresh round of trade developments, U.S. Commerce Secretary Howard Lutnick declared that smartphones and computers will soon be subject to new tariffs, distinct from previously imposed reciprocal tariffs. This move, set to occur within the next two months, aims at bolstering domestic production of these critical technology products.

President Donald Trump's decision to impose new duties marks another shift in his trade strategy, causing ripples across global markets. While the recent exemptions of some electronics from hefty tariffs offer momentary reprieve, the overarching concerns of a brewing trade war with China persist. Beijing's response, escalating its own tariffs on U.S. imports to 125%, underscores the mounting tensions.

Economic experts and political figures, including Senator Elizabeth Warren, have criticized the tariff revisions, highlighting the potential risks to economic stability. Meanwhile, tech giants like Apple and Dell, heavily reliant on Chinese imports, watch closely as the situation unfolds, with financial markets responding to every twist and turn of the unfolding trade narrative.

(With inputs from agencies.)