Bloomberg technology editor Mark Gurman reports that Trump has exempted smartphones, computers and other electronics from China from reciprocal tariffs. They were previously subject to duties of 145%. Exemptions in the U.S. Customs Service’s instructions also appeared for other electronic devices and components, including semiconductors, solar panels, flat-panel television displays, flash drives, memory cards and solid-state drives.
Even this morning, it was hard for me to imagine a bigger blow to Trump’s reputation. It’s clear that the duties were canceled because of pressure from Apple, Nvidia and other high-tech manufacturers whose goods doubled or tripled overnight. But it’s impossible to get out of your head the daily threats and solemn statements of Trump declaring war on China until the end.
It’s a shameful retreat, there’s no other way to put it. Moreover, an ill-conceived retreat, with the biggest blow to his reputation. For those who follow the fate of the Russian-Ukrainian conflict, it is important. A negotiator’s reputation, his character, intelligence, and consistency are the intangible assets of the entire team.
In this case, Trump’s reputation is the most important intangible asset of the US government. Especially if there are negotiations underway that are being closely watched by the entire world. Damage to it in one negotiation is automatically transferred to all others, they are communicating vessels.
Chairman Xi is not the only one grinning in Beijing. Putin in Moscow now assumes a more successful fight at the negotiating table (which is exactly what diplomatic warfare is). Zelensky will sink his teeth in, but will not give Ukraine to Washington as a trust under the subsoil agreement – he has been shown that you can disobey your senior partner.
If you couldn’t foresee the consequences for your own reputation a week ago when announcing deadly sanctions, you are no longer a top manager. You’re just a trader of houses, stores and warehouses. This is the beginning of the decline of Trump’s star.
