The Brussels and other European stock markets opened with solid gains on Monday. They reacted to the decision by the US to exempt smartphones, computers and other electronics from their tariffs, including the 145 per cent tariffs on Chinese imports. The US stressed that the exemption is only temporary and that electronics may be included in future tariffs on semiconductors.

The Bel20 in Brussels was up 2 per cent at the opening bell on Monday and by 9 am Belgian time, stock markets in Paris (2.14 per cent), Frankfurt (2.10 per cent), Milan (2.04 per cent) and London (1.60 per cent) were also rising. Stock markets in Asia also went up. 

The rebound follows the US government’s announcement that it had exempted smartphones, computers and other electronics – like semiconductors and memory cards – from the 10 per cent global tariff on most countries and the much heftier 145 per cent tariffs on Chinese imports. This move was made after US tech companies raised concerns that their products, such as Apple’s iPhone, would become a lot more expensive for US consumers as many of them are made in China.

Future tariffs on semiconductors

US president Donald Trump did stress that the Chinese electronics would still be subject to an existing 20 per cent tariff and that his administration is still investigating tariffs on the entire electronics supply chain. US Commerce Secretary Howard Lutnick clarified that the exemption for electronic products is only temporary and that electronics may be included in future tariffs on semiconductors. After which Trump on Sunday stated that he would announce new tariffs on semiconductors entering the US “within a week”.

China considers the current exemptions a “small step” and calls on the US to “completely abolish its reciprocal import tariffs and return to the proper path of mutual respect”.