The exemptions of smartphones and PCs from duties are only “temporary”: The imported electronic devices will in fact be subject to other rates established in the context of an investigation into the semiconductors sector due to national security reasons. The clarification of the secretary of American trade is a serious blow for the Silicon Valley – Apple and Nvidia in the first place -, for those who hoped in a loosening of commercial tensions with China and for markets, on which the uncertainty instead of decreasing seems to increase. The advertisements, reverse and clarifications arrived from the Trump Administration in the last ten days have fueled the volatility to Wall Street and triggered an escape of the investors from the dollar and the Treasury, questioning the status of ‘refuge’ of the United States in the global economic and financial system. Just the green ticket and American debt securities are the special observed of Wall Street and Fed. After ensuring that she is ready to intervene in case of need, the American central bank remains at the window. The president of the Fed of Minneapolis Neel Kashkari has flaunted security for the reopening of the markets but, at the same time, he specified that the only thing that the central bank can do at this moment is anchoring inflation expectations. In this context, analysts look next week of exchanges with concern, nervous in front of the new expected announcement of Trump on chips. The fear is of a new thud of the price lists in the absence of good news on the commercial front. The exemption from mutual duties of smartphones and PCs had been positively welcomed as it protected Apple and Nvidia, two of the giants of the Silicon Valley Cari at Wall Street. But since it is only a temporary respite, fear returns to rise.
“The duties on the semiconductors will arrive in one or two months,” said Howard Lutnick to ABC’s microphones, explaining that Trump has long hovers the possibility of sectoral duties on chips and pharmaceuticals. To those who asked him to clarify if the rates on the iPhone could therefore return, the secretary of the trade replied: «Correct, it is right. We need our medicines, our semiconductors and our electronic devices are produced in America ». The 30-60 days timing identified by Lutnick nervous investors, already skeptical on the 90-day truce for mutual duties because they are not considered sufficient to try to reach commercial agreements with 150 countries. The White House has repeatedly repeated in the last days of having already been contacted by 75 countries interested in an agreement on the duties and appears willing to initially privilege Japan, South Korea, Vietnam and India to counter Chinese influence. The speed with which the agreements will be reached will determine – according to analysts – the American recession chances, on which there is not much optimism. The clarification of the administration is a blow for Beijing, who had greeted the exemption of smartphones and PCs with mutual duties as a “small step forward”. “We urge the United States to take a big step forward to correct their mistakes, completely erase the incorrect practice of mutual duties and return to the right path of mutual respect,” said the Ministry of Chinese trade before Lutnick’s ice cream. The exemption for electronic devices had also been praised by the Information Technology Industry Council, trade association. “We welcome the exemptions and encourage the administration to continue taking measures” in this sense, commented the executive vice -president Sean Murphy. His good omen, however, has fallen into the void with Lutnick and, even if the sectoral duties will not be as high like the mutual ones to 125% for China, the risk is an increase in prices that will weigh on the pockets of American consumers and a leap of inflation.