After weeks of indications such a move was coming, the US Commerce secretary formally announced “national security” investigations into pharmaceutical imports, and another on semiconductors and chip-making equipment.
The specter of a broadening tariffs onslaught came as Treasury Secretary Scott Bessent touted momentum in talks with individual countries on reaching trade deals — but with little detail offered.
On China, he said “there’s a big deal to be done” but was notably vague about the timing or chances of it happening. Talks have begun with Vietnam and were to start with Japan on Wednesday, then South Korea next week, Bessent told Bloomberg TV.
Wall Street recovered its footing, with the Dow Jones and the S&P 500 index both closing up a little under one percent. This followed boosts on Asian and European markets.
Investors were relieved at the apparent easing of pressure in President Donald Trump’s wide-ranging but often chaotic attempt to reorder the world economy by using tariffs to force manufacturers to relocate to the United States.
Trump remains firm that the tariffs will bring critical manufacturing back, with White House spokesman Kush Desai telling AFP Monday that “the entire administration is committed to working on Trump Time” — apparently referring to moving quickly — on the matter.
Tit-for-tat exchanges have seen US levies imposed on China this year rise to 145 percent, and Beijing setting a retaliatory 125 percent barrier on US imports.
Late Friday, US officials announced exemptions from the latest duties against China and others for a range of high-end tech goods such as smartphones, semiconductors and computers.
But Trump suggested Sunday that the exemption would be only temporary and that he still planned to put barriers up on imported semiconductors and much else.