Overview

• President Trump has exempted smartphones, computers, and other electronics from U.S. tariffs and is considering a temporary reprieve for auto and auto parts imports.
• U.S. tariffs on Chinese goods have reached 145%, with China retaliating at 125%, significantly straining bilateral trade relations.
• Stock markets showed modest rebounds following the exemptions, but underlying volatility persists due to the unpredictable nature of tariff policies.
• Sectors like technology and agriculture face mixed impacts, with some companies benefiting from exemptions while others experience rising costs and reduced profits.
• Economists warn of heightened recession risks, with long-term economic outcomes remaining uncertain as the tariff strategy continues to evolve.