Tariff Tango: Lutnick’s Dance with Electronics and Market Mayhem!

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Ah, the illustrious Commerce Secretary Howard Lutnick, in a most theatrical display, has chosen to retract the recent reciprocal tariff exemption on select electronics, a revelation that was as unexpected as a cat at a dog show, announced in an April 12 bulletin from the United States Customs and Border Protection.

On the fateful day of April 13, Lutnick, in a moment of candidness, confided to ABC News that this exemption was but a fleeting whim, a temporary dalliance until the administration could conjure a sector tariff regime for semiconductor products—those delightful gadgets that include phones, graphics processors, and computing chips, all to be sorted out in a “month or two.” He further elaborated:

“President Trump has called out pharmaceuticals, semiconductors, and autos. He has deemed them sector tariffs, and those are not available for negotiation. They are simply part of our grand design to ensure that core national security items are crafted within our own borders.”

“We cannot, in good conscience, rely on China for the essentials of our existence. Our medicines and semiconductors must be birthed on American soil,” Lutnick continued, with a confidence that could only be rivaled by a peacock strutting its feathers. He also expressed his unwavering belief that the US and China would eventually reach a trade deal, as if they were two star-crossed lovers destined to reunite.

This fervent emphasis on national security and the noble pursuit of onshoring critical industries may well suggest that these trade tariffs are not merely a passing fancy, but rather a long-term geostrategic policy, rather than a short-term negotiation tactic to make US exports more alluring, as some analysts have whimsically suggested.

Trade war heightens volatility and sends markets tumbling

In a most dramatic turn of events, Trump’s trade tariffs have sent the stock and crypto markets into a tailspin, erasing trillions in shareholder value as investors, in a fit of panic, jettisoned riskier assets, fearing a protracted trade war between the United States and its trading partners—oh, the humanity!

In an April 10 X Post, the ever-astute Bloomberg analyst Eric Balchunas cited the SPY US Equity History Volume chart as evidence that the S&P 500 stock market index has now become more volatile than Bitcoin (BTC)—a feat that is as surprising as finding a politician who tells the truth.

According to this sage analyst, the S&P 500 Index reached a volatility level of 74 in April, while Bitcoin languished at a mere 71. Stocks and crypto experienced a euphoric surge following whispers of the Trump administration initiating a 90-day reciprocal tariff pause, with approximately $2 trillion flooding into stocks on the wings of these rumors.

Alas, much of this newfound wealth was swiftly obliterated when Trump declared that the rumors of a 90-day pause were as false as a three-dollar bill, only to see the Trump administration eventually issue a reciprocal tariff pause in the days that followed, leaving investors in a state of bewildered amusement.

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2025-04-14 01:00