Washington: U.S. President Donald Trump said he is considering offering temporary relief from reciprocal tariffs to the auto industry, allowing car manufacturers time to realign their supply chains. The statement comes amid escalating trade tensions, particularly with China, and as the administration plans new tariffs on key tech components.
Relief Likely for Automakers, Not Electronics
Speaking to reporters in the Oval Office, President Trump remarked, “I’m thinking about helping the auto manufacturers. They need time to shift production from Mexico and other places. They’re going to build in America, but they need a little time.”
However, Trump clarified that this temporary waiver would not extend to electronics such as smartphones and laptops. Despite earlier speculation that these products might be excluded from tariffs, he reaffirmed that no country will be exempt from trade levies. Products coming from China will continue to face a 20% tariff, with some being categorized separately for specific action.
“We will not be held hostage by any country, especially those that engage in hostile trade practices like China,” Trump asserted.
Semiconductor Tariffs Coming Soon
In a follow-up conversation with reporters aboard Air Force One, Trump announced that new tariffs on semiconductors will be rolled out as early as next week. These measures are expected to target Chinese and possibly other Asian semiconductor exports.
South Korea’s acting president Han Duck-soo confirmed that President Trump has instructed his administration to immediately initiate tariff talks with key allies including South Korea, Japan, and India, indicating a broader trade reshuffle in the Indo-Pacific region.
Xi Jinping Warns Against Tariff War
In a counter-message, Chinese President Xi Jinping warned that “no one wins in a tariff war.” Writing in an editorial published during his visit to Vietnam, Xi emphasized the need for both countries to uphold multilateral trade frameworks and preserve the stability of global supply chains.
He added, “China will continue its diplomatic consistency in the region and work jointly to advance Asia’s modernization. We remain committed to principles of friendship, sincerity, mutual benefit, and inclusiveness.”
Chinese Exports Surge Ahead of Tariff Hike
Meanwhile, Beijing reported a 12.4% year-on-year increase in exports for March, as companies rushed to ship goods ahead of expected U.S. tariff hikes. Imports, however, dropped 4.3% during the same period. Notably, exports to Southeast Asia grew by 17%, while shipments to Africa rose by over 11%.
In the first quarter of 2025 (January–March), China’s exports rose by 5.8% year-on-year, while imports fell 7%. China’s trade surplus with the U.S. stood at $27.6 billion in March, with an overall surplus of $76.6 billion for the quarter—further intensifying the focus of U.S. trade actions.
As Washington and Beijing navigate a complex trade standoff, President Trump’s calculated easing for the auto industry and hardening stance on electronics and semiconductors signal a strategic blend of flexibility and firmness. The coming weeks may be pivotal in reshaping global trade alignments amid increasing geopolitical and economic maneuvering.
