President Trump confirmed that phones, computers, and other major tech products will still face tariffs, even though there was confusion over the weekend about possible exemptions. In a long social media post, he said clearly there would be “no exception” for those items. He also said the government is now reviewing the entire electronics supply chain, including semiconductors, as part of a new national security tariff investigation. However, on Monday, Trump floated the idea of exemptions for auto parts tariffs, which are scheduled to hit 25% starting next month.
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This is because car companies may need more time to adapt, especially those that are sourcing parts from Canada, Mexico, and other countries under the USMCA trade agreement. “They’re switching to parts that were made in Canada, Mexico, and other places, and they need a little bit of time, because they’re going to make them here,” he said. As a result, this will offer some relief to automakers as they scramble to localize supply chains before the tariffs take effect.
Meanwhile, China has raised its tariffs on U.S. goods from 84% to 125%, and Trump warned that more tariffs may come soon, such as on pharmaceutical imports. He said, “All I have to do is impose a tariff. The higher the tariff, the faster they come.” Despite all the new tariffs, Trump said he remains flexible and keeps in touch with business leaders like Apple CEO Tim Cook.
Is SPY a Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on the SPDR S&P 500 ETF Trust (SPY) based on 412 Buys, 84 Holds, and eight Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average SPY price target of $671.82 per share implies 25% upside potential.
