Another trick of the trump government, America's new weapon…?
The US government may have exempted some electronic products from tariff i.e. import duty, but this relief is not going to last long. US Commerce Secretary Howard Lutnick has clearly said that this exemption is only temporary and soon a special kind of "semiconductor tariff" will be imposed on these products as well.
What did the Commerce Secretary say?
While talking on ABC channel's show 'This Week' on Sunday, US Commerce Secretary Lutnick said, "Many electronic items like smartphones, computers, solar cells, flat-panel TVs have been kept out of tariff for now, but all these products will come under the purview of semiconductor tax in the next 1-2 months." He said that America now wants to manufacture these essential items like chips, flat panels and semiconductors in its own country. Lutnick stressed that we cannot completely depend on South east Asia.
It is a matter of national security
Lutnik also clarified that this is not an issue that can be resolved by talking to other countries. He said that these products now come under 'National Security'. Meaning, they should now be made in America only. They cannot be exempted from tariffs forever.
What is the thinking of the trump administration?
President donald trump and his team want factories to be set up again in America, especially for medicines and technology related goods. For this, by imposing tax on imports, companies are being forced to bring manufacturing back to America.
Which products are currently exempted?
On friday night, the US Customs Agency issued a notice stating that things like smartphones, computers, solar cells, tv displays, and storage devices have been exempted from tariffs for the time being. But now it has become clear that this exemption is temporary and tax may be imposed again in the coming months.
Message for India
In America, tariff policy is now directly linked to national security. This is a signal for countries like india that the era of 'safe trade' is now going to come more than 'free trade' in global trade.
