Donald Trump insists there will be NO tariff exemptions in dramatic policy reversal

President Donald Trump took to Truth Social to clarify that China - which is embroiled in an escalating trade war with the US - will not be exempt from tariffs on electronics and semiconductors

Donald Trump preparing to watch a UFC bout in Miami, Florida

President Donald Trump has insisted no country will be exempt from his sweeping tariffs after confusion over his policy on electronics. Taking to his Truth Social platform, the president wrote: "NOBODY is getting “off the hook” for the unfair Trade Balances, and Non Monetary Tariff Barriers, that other Countries have used against us, especially not China which, by far, treats us the worst!'"

Late on Friday night, the administration said that gadgets and electronics would be spared from the crushing 125 per cent import tariff, as well as his 10 per cent universal tariff. However, on Sunday the administration clarified that electronics would be hit with wholly different charges.

China has hit back with its own tariffs

"There was no Tariff 'exception' announced on Friday," Trump added in his post. "These products are subject to the existing 20% Fentanyl Tariffs, and they are just moving to a different Tariff 'bucket'. He added that the White House is looking at the "WHOLE ELECTRONICS SUPPLY CHAIN" and "Semiconductors" in an upcoming investigation.

In the post, the 78-year-old slammed China, saying the US refused to be "held hostage by other Countries, especially hostile trading Nations like China [sic]." He said Beijing will do "everything in its power to disrespect the American people".

The correction about electronics came from Commerce Secretary Howard Lutnick, who clarified they will be included in tariffs that will be announced in a "month or two".

Appearing on ABC, he said: "Well remember those products are going to be part of the semiconductor sectoral tariffs which are coming."

Electronics will fall under the semiconductor tariffs, in a similar way to the separate pharmaceutical and car tariffs.

"They're going to have a special focused type of tariff to make sure that those products get reshored," Lutnick said.

Lutnick called for these kind of products to be produced in America, which make them exempt from the reciprocal tariffs.

The tariff model being suggested will encourage the building of these products in America. "This is not like, a permanent sort of exemption," he said.

The tariffs rattled traders and investors, with trillions of dollars wiped off financial markets in the aftermath, while the US dollar and price of oil also sunk.

Meanwhile, so-called “safe haven” assets like gold and the Swiss franc have seen boosts, with the price of gold reaching new highs.

In an astonishing U-turn, Trump announced a 90-day pause with universal 10% tariffs on all countries except for China, which he slapped with a 125% tariff.

China soon retaliated with its own tit-for-tat 125% tariffs, as the escalating standoff between the world's two biggest economies continues to dominate headlines.

Kevin Hassett, a senior economic adviser to President Trump, suggested the blanket 10% tariff rate most countries now face was likely to be a “baseline” - and anything below this would be “extraordinary”. However, Chancellor Rachel Reeves has said the UK is “resolved” to do everything it can to secure the “best deal possible” with the US.