Softened Stance Could Witness Optimism Returning
Team Veye | 14-Apr-2025
President Donald Trump’s announcement of exempting electronics from his reciprocal tariffs, including China came as a big relief. But when U.S. Commerce Secretary Howard Lutnick stated in an interview that electronics goods such as smartphones would eventually fall under a separate round of tariffs on semiconductors, the imperative was clear, that this could be shortlived.
In the backdrop of the government pausing more than once on the matter of tariff rollout, the latest remarks by Lutnick could cause some uncertainty in global business. And one thing that is despised the most by the global markets is uncertainty.
Relaxation of tariffs on Chinese imports was construed as a victory for companies like Apple, whose iPhones are mostly made there.
On the other hand, countries like United Kingdom, the European Union, India, Japan, South Korea, Indonesia and Israel are among the nations in active negotiations with U.S. Trade Representative Jamieson Greer, Lutnick and other officials to get meaningful deals before the expiry of Trump’s pause of 90 days.
The scramble to secure deals in a bid to pare back punitive tariffs has led to some optimism returning to stock markets which could be apparent in expected gains on Monday.
Source - Reuters
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