U.S. Commerce Secretary Lutnick: Pharmaceuticals and chips will be listed as non-negotiable bargaining chips, and additional national security tariffs will be imposed.

The U.S. government announced on April 12 that electronic products such as smartphones, laptops, and chip components can temporarily be exempt from tariffs. In response, U.S. Secretary of Commerce Howard Lutnick stated in an interview this morning on April 14 that it is not about letting these products off the hook, but rather about separating semiconductors and pharmaceuticals to upgrade them into non-negotiable "strategic chips." Lutnick added that the purpose of this is to bring the Supply Chain back to the United States.

Electronic products are temporarily tax-exempt, while drugs and chips will be classified as non-negotiable bargaining chips.

Tariffs on electronic products such as smartphones and laptops are temporarily exempt. Lutnick emphasized that these items will be processed under the "semiconductor tariff" framework and will be taxed using different logic, rather than being completely removed.

He added: "President Trump wants to list key products such as pharmaceuticals and semiconductors as non-negotiable items and make them national security projects, while also bringing key industries back to manufacturing in the United States."

In indirect communication between the US and China, Trump will handle it.

Regarding whether the United States has direct communication with China, Lutnick responded: "Currently, it is through indirect communication, but both sides will work things out."

He emphasized that Trump is a president who knows how to deal with this kind of situation. Although there is still a standoff, a reasonable outcome will ultimately be reached.

Tariffs cannot be reduced, the Supply Chain must be fully pumped back to the United States.

Lutnick also reiterated that these strategic products must be repumped back to American manufacturing: "We can no longer rely on China to send us antibiotics. We can't be at war and still wait for them to send chips."

He cited that American modern car manufacturers and high-tech manufacturing technologies are ready, like Panasonic, which has provided over 4,000 high-paying job vacancies in Kansas (Kansas), proving that the industry can return to the United States.

There are doubts from the outside that prices will increase, but Lutnick will keep costs down in the long term.

Regarding concerns from the outside world that opening so many factories will drive up prices, Lutnick believes: "As more American-made products are sold globally, for example, American farmers can start exporting corn to India, the prices will naturally come down."

He also mentioned: "Many products can actually be reasonably priced if made in the United States, and they won't necessarily be more expensive than those made overseas."

In response to legal questions about tariffs, Lutnick stated that this is to defend national security.

Because the U.S. Constitution stipulates that the power to impose tariffs is within the purview of Congress, there are still doubts from the outside about whether Trump has the authority to exercise it unilaterally.

Lutnick responded: "President Trump is exercising his power based on the past Congressional authorization of the National Security Clause. The manufacturing of pharmaceuticals and chips is not an ordinary trade issue, but a national security matter."

Don't worry about the weakening of the US dollar, focus on negotiating the tariff policy.

Finally, regarding the decline of the US dollar index, which has seen its worst performance in three years, Lutnick stated: "We are focused on negotiating favorable terms with various countries. President Trump has authorized us to negotiate, and we will definitely secure the best outcome for the American people."

The United States aims to create a "strategic manufacturing supply chain" and continues to call for businesses to return.

In summary, the U.S. government is not making a "concession" this time, but rather separating products such as semiconductors and pharmaceuticals from the general category of goods, upgrading them to non-negotiable strategic chips. It also demands that manufacturing take place on U.S. soil, pulling the entire manufacturing chain back to the U.S. It seems that U.S.-China trade has entered a new stage of confrontation.

This article features U.S. Secretary of Commerce Lutnick: Pharmaceuticals and chips will be listed as non-negotiable bargaining chips and will incur additional national security tariffs, first appearing in Chain News ABMedia.