President Donald Trump is drafting a revised tariff policy that would impose sweeping new levies on Chinese imports while strategically exempting consumer electronics like smartphones and laptops, according to Howard Lutnick, CEO of BGC Partners. The plan aims to maintain pressure on Beijing without triggering significant price hikes for American voters ahead of the 2024 election.

Sources reveal the proposal would:
• Apply 60% baseline tariffs on most Chinese goods
• Exempt finished electronics containing advanced chips
• Maintain existing Section 301 tariffs on industrial components

“Smartphones are the third rail of trade policy,” Lutnick told Reuters, noting that 94% of U.S. consumer electronics rely on Chinese assembly. The carve-out reflects lessons from Trump’s first term, when tariffs cost the average household $1,277 annually according to NY Fed data.

The proposal emerges as U.S. tech imports from China reached a record $438 billion in 2024 – representing 42% of all Chinese goods entering American markets, according to Commerce Department data.