Commerce Secretary Howard Lutnick walked the recent mutual tariff exemption on some electronic devices announced by US Customs Border Protection on April 12th.
On April 13, Lutnick told ABC News that mutual tariff exemptions were temporary until it established a sector tariff regime for mobile phones, graphics processors and semiconductor products that calculate chips “one or two months.” Lutnick added:
“President Trump called for drugs, semiconductors and cars. He called them sector tariffs, which are not available for negotiation. They will only be part of ensuring that core national security items are done in this country.”
“We can’t rely on the basics we need. We need to build our medicines and semiconductors in America,” continued Lutnick. Officials also said they are confident that the US and China will arrive in the trade contract through negotiations.
As some analysts have suggested, by focusing on key industries of national security and oversight, it could indicate that trade tariffs are a long-term geostrategic policy, not merely a short-term negotiation tactic, not merely a short-term negotiation tactic.
Volatility S&P Index (VIX), a measure of volatility in the S&P Stock Index, remains rising amidst the uncertainty of the macroeconomic. Source: TradingView
Related: Bitcoin’ Decalp, “Stocks Lost 3.5T amid Trump’s Tariff War, giving warning of ‘higher inflation’
Trade wars increase volatility and overturn markets
Trump’s trade tariffs have crashed stocks and crypto markets, wiping trillions of shareholder value as investors dumped risky assets in the fear of a long trade war between the United States and its trading partners.
On the X Post on April 10th, Bloomberg analyst Eric Balknas cited the SPY US Equity History Volume Chart as evidence that the S&P 500 Stock Market Index is more volatile than Bitcoin (BTC).
According to analysts, the S&P 500 index reached 74 volatility levels in April, compared to Bitcoin’s 71.
Stocks and codes have been pumped following rumors about the Trump administration starting a 90-day mutual tariff suspension. Rumors of soft trade policy have led to around $2 trillion pumping into stocks.
Much of this value was wiped out when Trump claimed that rumors of a 90-day suspension were false and in fact returned after issuing mutual tariff suspension the following day.
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