US President Donald Trump has said that tariff exemptions on electronics announced on Friday are temporary and that the goods will be subject to levies soon, leading to continuing uncertainty in the market.
His administration on Friday had issued an exemption from reciprocal tariffs, including from 125 per cent levies on China and a 10 per cent rate globally, on electronic goods such as smartphones and computers.
The exceptions also covered other electronic devices and components, including semiconductors, solar cells, flat panel TV displays, flash drives, memory cards and solid-state drives used for storing data, in response to consumer concerns about a jump in prices of iPhones and other devices. Most of the exempt electronic items are not made in the US and many are imported from China.
“Nobody is getting 'off the hook' for the unfair trade balances, and non monetary tariff barriers, that other countries have used against us, especially not China which, by far, treats us the worst,” Mr Trump wrote in a Truth Social post on Sunday.
“There was no tariff 'exception' announced on Friday. These products are subject to the existing 20 per cent fentanyl tariffs, and they are just moving to a different tariff 'bucket' … We are taking a look at semiconductors and the whole electronics supply chain in the upcoming national security tariff investigations,” he added.
Mr Trump has said his move is aimed at localising tech manufacturing in the US.
“We wanted to uncomplicate it from a lot of other companies, because we want to make our chips and semiconductors and other things in our country,” he told reporters aboard Air Force One on Sunday.
Mr Trump had previously said he was “optimistic” China and the US would negotiate a deal on tariffs. His comments followed a decision from Beijing to raise tariffs on US goods from 84 per cent to 125 per cent beginning on Saturday.
China has also halted the exports of some key rare earth minerals and magnets in response to the trade war, Reuters reported last week. The minerals are essential for semiconductor manufacturing, car makers and aerospace companies.
“The problem is that there remain millions of small and medium-size American businesses that suffer from an inability to adapt to the tariffs on China overnight,” American billionaire hedge fund manager Bill Ackerman, wrote on X.
“If President Trump were to pause the China tariffs for 90 days and reduce them temporarily to 10 per cent, he would achieve the same objective in causing US businesses to relocate their supply chains from China without the disruption and risk to these businesses in the short term, and he would have time to negotiate a deal with China.”
The tariff disruption has rattled investors and weighed heavily on stock markets with trillions of dollars in value wiped out globally.
Asian stock markets rose in early trading on Monday on news of the electronics tariffs reprieve.
Japan's Nikkei 225 Index, was up 1.56 per cent at 7.50am on Monday. South Korea's Kospi rose 0.85 per cent, shares in Hong Kong's Hang Seng rose 2.47 per cent, while Taiwan’s equity benchmark Taiex was up 1.3 per cent. The Shanghai Composite index was 0.86 per cent higher and equity gauge in Australia also rose 1.42 per cent.
“Signs of the US government relenting on some of the more aggressive tariff measures helped to turn equities around at the end of the week with the Dow Jones managing a gain of 1.6 per cent on Friday while the S&P added 1.8 per cent,” Dubai bank Emirates NBD said in a note on Monday.
US and European equity futures were also higher on Monday, with the S&P 500 futures up 0.98 per cent and Nasdaq 100 futures up 0.35 per cent. The FTSE 100 futures gained 2 per cent and Euro Stoxx 50 futures rose 2.45 per cent.
Know before you go
- Jebel Akhdar is a two-hour drive from Muscat airport or a six-hour drive from Dubai. It’s impossible to visit by car unless you have a 4x4. Phone ahead to the hotel to arrange a transfer.
- If you’re driving, make sure your insurance covers Oman.
- By air: Budget airlines Air Arabia, Flydubai and SalamAir offer direct routes to Muscat from the UAE.
- Tourists from the Emirates (UAE nationals not included) must apply for an Omani visa online before arrival at evisa.rop.gov.om. The process typically takes several days.
- Flash floods are probable due to the terrain and a lack of drainage. Always check the weather before venturing into any canyons or other remote areas and identify a plan of escape that includes high ground, shelter and parking where your car won’t be overtaken by sudden downpours.
Afcon 2019
SEMI-FINALS
Senegal v Tunisia, 8pm
Algeria v Nigeria, 11pm
Matches are live on BeIN Sports
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
UAE currency: the story behind the money in your pockets
The specs: Fenyr SuperSport
Price, base: Dh5.1 million
Engine: 3.8-litre twin-turbo flat-six
Transmission: Seven-speed automatic
Power: 800hp @ 7,100pm
Torque: 980Nm @ 4,000rpm
Fuel economy, combined: 13.5L / 100km
Dhadak 2
Director: Shazia Iqbal
Starring: Siddhant Chaturvedi, Triptii Dimri
Rating: 1/5
EPL's youngest
- Ethan Nwaneri (Arsenal)
15 years, 181 days old
- Max Dowman (Arsenal)
15 years, 235 days old
- Jeremy Monga (Leicester)
15 years, 271 days old
- Harvey Elliott (Fulham)
16 years, 30 days old
- Matthew Briggs (Fulham)
16 years, 68 days old
Quick%20facts
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Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
THREE POSSIBLE REPLACEMENTS
Khalfan Mubarak
The Al Jazira playmaker has for some time been tipped for stardom within UAE football, with Quique Sanchez Flores, his former manager at Al Ahli, once labelling him a “genius”. He was only 17. Now 23, Mubarak has developed into a crafty supplier of chances, evidenced by his seven assists in six league matches this season. Still to display his class at international level, though.
Rayan Yaslam
The Al Ain attacking midfielder has become a regular starter for his club in the past 15 months. Yaslam, 23, is a tidy and intelligent player, technically proficient with an eye for opening up defences. Developed while alongside Abdulrahman in the Al Ain first-team and has progressed well since manager Zoran Mamic’s arrival. However, made his UAE debut only last December.
Ismail Matar
The Al Wahda forward is revered by teammates and a key contributor to the squad. At 35, his best days are behind him, but Matar is incredibly experienced and an example to his colleagues. His ability to cope with tournament football is a concern, though, despite Matar beginning the season well. Not a like-for-like replacement, although the system could be adjusted to suit.
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
