Every week when I inevitably have to report on the what's happened with tariffs, I get frustrated and feel angry on behalf of all consumers and small business owners who have to deal with this ridiculousness. These tariffs are creating an economic stalemate, where no-one wants to do anything because the actions they take today to change their business in response to tariffs may be irrelevant tomorrow when Trump changes his mind.
Here's what you missed last week in tariff news:
- President Trump announced a 90-day pause on reciprocal tariffs above 10% for all countries except China. Imports from China heightened to 125% due to a “lack of respect” from Beijing, then later they clarified that it would actually be 145%.
- The administration later said that the exemptions were temporary and that new tariffs, particularly on semiconductors and pharmaceuticals, would be introduced under national security considerations.
- In response to US tariffs, China increased its tariffs on American imports from 84% to 125%, effective April 12.
- China also suspended exports of critical minerals and rare earth elements essential for electronics and aerospace industries, escalating trade tensions.
- On April 12th, the US government announced temporary exemptions for smartphones, laptops, and semiconductor manufacturing equipment from the imposed tariffs, providing relief to the tech sector.
- Despite the exemptions, officials indicated that these products would soon undergo a national security review, suggesting potential future tariff reinstatements.
- Yesterday, Trump stated that new tariffs on imported semiconductor chips would be announced later in the week, maintaining pressure on the tech industry.
- Amazon CEO Andy Jassy said that the company is still digesting the impact of the tariffs, but expects that its network of third-party sellers will “pass that cost on” to consumers.
- Later it was revealed that Amazon canceled many of their orders from China, Vietnam, and Thailand to minimize their direct exposure to tariffs, including for beach chairs, scooters, air conditioners and other merchandise.
- Industry experts are predicting that the US's considerable de minimis fee and tariff hike will “cripple the air cargo industry,” as regular e-commerce shipments become no longer economically viable.
- Lenovo, Dell, HP, and other manufacturers suspended shipments to the US for two weeks to see what ends up happening with the tariffs.
- An increasing number of Chinese manufacturers are offering to lie for sellers about the value of their goods as a means to pay less tariffs. This practice has been going on for years, but now it's happening on a wider scale and with greater differences between the actual and declared value of goods.
More tariff announcements are expected today (Monday) so stay tuned.