Trump Backtracks On Chinese Tariffs And Allows For Major Exemptions, As White House Admits Tariffs Won't Bring Back Manufacturing

Mr. “Art of the Deal” ran his mouth and folded, again. But don’t worry everyone, this is just Trump playing 20-D chess: we just need to ‘trust the plan.’

Trump bowing to Xi Jinping. AI-generated

Undeterred by President Donald Trump’s threats, the U.S. has rescinded even more of its tariffs against China and is now exempting tech items from the tariff list as trade relations rapidly deteriorate for the U.S.

Last week, Trump upped the tariffs to 145% on Chinese imports. China responded not long thereafter and retaliated with 125% tariffs of its own, but signaled it was not going to retaliate any further as Beijing believes it is simply pointless going forward. Those tariffs took effect on April 12th.

The Chinese State Council Tariff Commission said in a statement: "Given that at the current tariff level, there is no market acceptance for U.S. goods exported to China. If the U.S. continues to impose tariffs on Chinese goods exported to the U.S., China will ignore it.”

The Commerce Ministry added:

"Even if the U.S. continues to impose higher tariffs, it will no longer make economic sense and will become a joke in the history of the world economy."

Foreign Ministry Spokesperson Li Jian said in a statement

Ultimately, Trump capitulated and has rescinded the scope of the Chinese tariffs, granting exemptions to a number of imports, particularly in the tech sector - an industry that has been gutted by a sell-off in the stock market, on top of a sour outlook that began in February when Chinese Deep Seek, a much cheaper and more effective AI model, rattled the AI bubble.

U.S. Customs and Border Protection (CBP) provided updated guidance Friday night on product exclusions from Trump's reciprocal tariffs. The list (with the tariff codes) includes:

• 8471 – Automatic data processing machines and units thereof (e.g., laptops, desktops, servers).

• 8473.30 – Parts and accessories for automatic data processing machines (e.g., computer parts).

• 8486 – Machines and apparatus for the manufacture of semiconductor devices or electronic integrated circuits.

• 8517.13.00 – Smartphones and other telecommunication apparatus for cellular networks.

• 8517.62.00 – Machines for the reception, conversion, and transmission/regeneration of voice, images, or other data (e.g., modems, routers).

• 8523.51.00 – Solid-state non-volatile storage devices (e.g., flash memory, SSDs).

• 8524 – Media for the recording of sound or other phenomena, not elsewhere specified (can include CDs, DVDs, etc.).

• 8528.52.00 – Monitors capable of directly connecting to an automatic data processing machine (e.g., computer monitors).

• 8541.10.00 – Diodes, other than photosensitive or light-emitting diodes (LEDs).

• 8541.21.00 – Transistors with a dissipation rate of <1 W.

• 8541.29.00 – Other transistors.

• 8541.30.00 – Thyristors, diacs, and triacs (semiconductor switching devices).

• 8541.49.10 – Light-emitting diodes (LEDs) – chips mounted in discrete packages.

• 8541.49.70 – Other LEDs, not listed elsewhere.

• 8541.49.80 – Infrared LEDs.

• 8541.49.95 – Other light-emitting semiconductor devices.

• 8541.51.00 – Silicon-based photovoltaic devices (solar cells), whether or not assembled in modules or panels.

• 8541.59.00 – Other photovoltaic devices.

• 8541.90.00 – Parts of the goods of heading 8541 (e.g., parts for diodes, transistors, LEDs).

• 8542 – Electronic integrated circuits (e.g., microprocessors, memory chips).

ZeroHedge noted:

Meanwhile, Wall Street analysts have already trimmed sales estimates for U.S. companies with Chinese exposure, including Apple and Tesla, as economic storm clouds gather over global trade.

Notably, most of the products now exempt from reciprocal tariffs are those the U.S. lacks the capacity to produce at scale—highlighting the need for significant reshoring, investment, and supply chain restructuring.

Many of these products are also consumer essentials—items Americans couldn’t live without, such as smartphones and computers—making them politically sensitive. The Trump administration likely chose not to risk upsetting consumers ahead of the Midterms.

However, Trump adviser Stephen Miller later clarified these items are still "subject to the tariff under the original IEEPA on China of 20 percent."

0% Tariffs Are Not Good Enough - Manufacturing Not Coming Back

Trump’s latest flip-flop was seen as yet another sign of the administration’s fickle nature and lack of a cohesive plan. The Trump White House has repeatedly contended that these tariffs would close the trade deficit, bring back jobs and manufacturing in the U.S. With Trump pausing the confusing bundle of reciprocal tariffs he announced earlier this month, and his latest capitulation after China refused to back down, it seems any new investment moving forward will just have to wait - probably indefinitely.

But even as Trump’s so-called reciprocal tariffs were being rolled-out, those within Trump’s cabinet admitted that these tariffs were not going to bring jobs to Americans.

Commerce Secretary Howard Lutnick said during an interview with CBS, claiming that “trillions” of dollars would come into the US in the form of new investments in America’s manufacturing sector. However, when asked for clarification, Lutnick admitted that these factories would be automated meaning unions and blue-collar workers would not be looking forward to new jobs. “It’s automated factories,” Lutnick admitted, but promised American workers would build and “operate” the factories in the coming months and years.

Economists have been critical of the Trump administration’s claims that the tariffs will lead to reinvestment in the U.S. and create new manufacturing jobs. Among them is Peter Schiff, who said in a comment on X:

“Nike won’t build factories in the U.S. to make sneakers. That would add more costs than the 40% tariffs. The result will be fewer sneakers sold in the U.S. at much higher prices.

One commenter on ZeroHedge, who says he is in manufacturing, explained how, in his opinion, manufacturing is not coming back:

On top of this, the White House signaled to the world that even if countries were to lower any existing tariffs to 0% that still would not be enough. Barron’s reported last week:

Part of the conundrum lies within the formula the Trump administration used to determine each country’s individualized tariff rate. That formula divided the country’s goods trade deficit by total U.S. imports from the country. Economists note that the calculation left out services, a major component of trade, resulting in tariff rates that are multiples higher than what countries charge the U.S. and levies on countries with no trade deficit. Germany’s economy minister Robert Habeck described the premise of the tariffs on Monday as “nonsense.”

Trump's Liberation Day Is About 'Re-Structuring The American Government' Per Officials, As His Reciprocal Tariffs Are Completely Fabricated And Nations Retaliate

That formula has created confusion about what the White House is seeking to gain from negotiations. Take Vietnam, among the hardest hit trading partners with a rate of 46% and one of the first countries that reached out to negotiate, according to President Donald Trump. On Monday, White House trade adviser Peter Navarro said it wouldn’t be enough for Vietnam to slash its tariffs on U.S. imports to zero. He noted that non-tariff barriers, which the administration has described as ranging from value-added taxes (VAT) and unfair rules to currency manipulation and creating pollution havens, were an even bigger problem.

Now take a look at those demands to eliminate VAT, for example. In the case of the EU, “the U.S. is demanding they change the most important part of their tax policy. It can’t happen. Their whole budget would be sunk,” says Jens Nordvig, founder of Exante Data.

To bring the U.S. trade balance from deficit to zero, veteran currency strategist Bilal Hafeez, who now is head of research at Macro Hive, says countries will have to strengthen currencies, stimulate domestic demand to enable them to buy more U.S. goods, and export much less.

The fastest way to do all that and get the U.S. to buy less of the world’s goods is via a recession. Indeed, Hafeez notes, the last times the U.S. trade balance experienced major reversals were during the global financial crisis and the 1990-1991 recession.

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AUTHOR COMMENTARY

The scriptures have plenty to say about your mouth and the power of the tongue, and Trump is another case example of someone who runs his mouth, who talks big and proud, but is all talk no action, all bark no bite.

Proverbs 12:13 The wicked is snared by the transgression of his lips: but the just shall come out of trouble. [14] A man shall be satisfied with good by the fruit of his mouth: and the recompence of a man's hands shall be rendered unto him.

Proverbs 13:3 He that keepeth his mouth keepeth his life: but he that openeth wide his lips shall have destruction.

Proverbs 26:28 A lying tongue hateth those that are afflicted by it; and a flattering mouth worketh ruin.

Mr. “Art of the Deal” ran his mouth and folded, again. But don’t worry everyone, this is just Trump playing 20-D chess: we just need to ‘trust the plan.’

And according to Lutnick, even if Trump wasn’t such a fat-mouthed paper tiger, all we would get is automated factories and jobs in the short-run to build the factory and then technicians for maintenance. That’s what “winning” looks like; and if they were factories with people working in them, it would be more imported cheap labor.

Flip-Flop: Trump’s New Love For H-1B Visas Completely Contradicts Campaign Statements, Cheap Labor Continues As Usual To Pacify Musk And The Corporate Agenda

I said it when Trump announced these tariffs that I am thoroughly convinced this is a controlled-demolition of the current system, and that is proving correct, because what countries, what businesses, are going to want to increase trade and make new investments with us, on top of the mountain of other problems in this country? It’s deliberate isolationism because the empire is collapsing and the rich fat cats are jumping ship before the Titanic sinks, as the world undergoes a restructuring and currency reset as we get bridged into the new tokenized system.

Pump & Dump: Trump Tells Americans To Buy The Market Hours Before He Announces 90-Day Pause On Tariffs But Increases Chinese Tariffs To 125%. *UPDATE*

Are You Anti-American If You Buy Goods From China And Other Countries To Save Money Amidst Trade War?

Job 12:23 He increaseth the nations, and destroyeth them: he enlargeth the nations, and straiteneth them again.

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[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).

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