Tariff chaos continues as confused Trump squashes smartphone exemption in new U-turn

The first weeks of the second Trump presidency have been a clown show. First came the unveiling of tariffs on Canada and Mexico, causing economic havoc and resulting in a rapid U-turn.

Then we saw Trump unveiling crushing tariffs on the rest of the world, crashing the stock market. Faced with economic oblivion, the White House blinked and announced yet another panicked U-turn, postponing all tariffs except those on China.

Now – you guessed it – once again you can hear the sound of screeching tyres over on 1600 Pennsylvania Avenue as yet another U-turn has been unveiled. On Friday, it was announced that smartphones, computers, and other electronic devices would be exempt from the China tariffs. But, taking to Truth Social late last night, Trump said that’s actually not going to happen. In a confusing ramble he said:

“These products are subject to the existing 20% Fentanyl Tariffs, and they are just moving to a different Tariff “bucket.”

Okay, so there’s the 125% regular tariff on Chinese exports, the 20% special fentanyl tariff, and now some kind of third tariff “bucket”. Folks, I think the president might not be the master economist he makes himself out to be.

The financial markets and the economy at large are founded on stability. This means countries negotiating trade deals, announcing their cooperation, and then keeping to their word. It means confidence that the government has a sane and costed economic plan. It means assurances that inflation and interest rates will be carefully controlled.

The Trump administration is doing literally the opposite of all that. If they had set out to intentionally destroy confidence in the United States as a trade partner, wreck the economy, and lose trillions of dollars, they couldn’t have done a better job than they’re doing right now.

There have been so many abrupt policy reversals over the last weeks that most trade partners are simply learning not to take anything that the White House says too seriously. After all, even if what seems like bad news is announced, give it a few days, and the exact opposite will probably be happening.

But while the world can merely roll its eyes in America’s direction, regular people are set to suffer. The tariff chaos is already hitting prices on consumer products and – if we should even believe Trump – the specter of an extra $1000 on smartphones seems very likely. How much pain the American consumer will tolerate before action is taken remains to be seen, but either way, it’s going to be interesting finding out!