In a surprising twist to his typically protectionist rhetoric, former U.S. President Donald Trump stated on Monday that he is "very flexible" regarding the implementation of new tariffs. This statement hints at potential exemptions for certain industries and technological products.
During a press briefing at the White House with El Salvador's President, Nayib Bukele, Trump addressed questions about his recent proposal for a universal 10% tariff on all imports. This proposal has stirred significant concern among U.S. businesses and trading partners. "I'm very flexible... I don't change my mind, but I'm flexible," Trump remarked.
When asked about possible exemptions for products with a "short lifespan," Trump commented, "I'm considering ways to help some automotive companies... They're shifting to parts made in Canada, Mexico, and other places, but they need time. They'll produce here, but they need time," he explained in a video released by the government on X.
Regarding technological products like Apple's iPhones, Trump struck a conciliatory note, emphasizing his relationship with the company's CEO: "I talk to Tim Cook, I helped him recently. I don't want to hurt anyone... But ultimately, we're going to achieve it. Greatness for our country," he emphasized.
Trade Tensions with Room for Negotiation
Despite asserting he doesn't change his mind, Trump nuanced his stance: "You can't just build a wall and walk away. Sometimes you need to go around it, under it, or over it." This message suggests a willingness to negotiate specific exemptions in his tariff policy, particularly in sectors where U.S. companies still rely on foreign components.
Universal Tariffs on the Horizon
Trump has advocated for a base tariff of 10% on all imported goods as part of his strategy for "reindustrialization" and "smart economic warfare." This approach aims to protect domestic industries and reduce reliance on countries like China.
In addition, Trump increased tariffs on Chinese imports to 145%, while temporarily exempting electronics by setting a 20% rate on those items. China retaliated with a hike up to 125%. However, these tariff exemptions could expire soon, as suggested by Trump's Commerce Secretary, Howard Lutnick.
"They're exempt from reciprocal tariffs but included in semiconductor tariffs, which will likely come into effect in one or two months," Lutnick mentioned on ABC News' "This Week."
Analysts warn that this policy could lead to trade reprisals, increased product costs, and tensions with longstanding U.S. allies, aside from creating friction with major tech companies like Apple.
FAQs on Trump's Tariff Flexibility
Why did Trump say he is "very flexible" about tariffs?
Trump indicated a willingness to consider specific exemptions for certain industries and products, suggesting a more negotiable stance on his tariff policy.
What is the proposed universal tariff rate?
Trump proposed a base tariff rate of 10% on all imported goods as part of his "reindustrialization" strategy.
What impact might the tariff policy have on U.S. industries?
Analysts warn that the policy could increase product costs, provoke trade reprisals, and create tensions with both trading partners and major tech companies.