U.S. Commerce Secretary Lutnick: Drugs and chips will be listed as non-negotiable bargaining chips, and will be subject to national security tariffs

The US government announced on 4/12 that electronic products such as smartphones, laptops, and chip components can be temporarily tax-exempt. In response, US Secretary of Commerce Howard Lutnick stated in an interview this morning on 4/14 that it is not about exempting these products, but about separating semiconductors and pharmaceuticals and upgrading them into non-negotiable "strategic bargaining chips". Lutnick added that the purpose is to bring the supply chain back to the United States.

Electronic products temporarily tax-exempt, pharmaceuticals and chips to be listed as non-negotiable bargaining chips

Regarding the temporary tax exemption for electronic products such as smartphones and laptops, Lutnick emphasized that these goods will be handled within the "semiconductor tariff" framework and taxed using different logic, not completely abolished.

He added: "President Trump wants to list pharmaceuticals, semiconductors, and other key products as non-negotiable items, make them national security projects, and simultaneously bring key industries back to US manufacturing."

Indirect communication between US and China, Trump will get it done

Regarding whether the US is directly communicating with China, Lutnick responded: "Currently, it is through indirect communication, but both sides will resolve the matter."

He emphasized that Trump is a president who knows how to handle such situations. Although they are still confronting each other, a reasonable result will ultimately be reached.

Tariffs cannot be reduced, supply chain must be fully brought back to the US

Lutnick also reiterated that these strategic products must be brought back to US manufacturing: "We can't rely on China to send us antibiotics. We can't wait for them to send chips during a war."

He gave an example that US modern car factories and high-tech manufacturing technologies are ready, with Panasonic offering over 4,000 high-paying jobs in Kansas, proving that industries can return to the US.

External concerns about price increases, Lutnick says long-term costs will be reduced

Regarding external concerns that opening many factories will make things more expensive, Lutnick believes: "When more US-made products are sold worldwide, such as US farmers starting to export corn to India, prices will naturally come down."

He also mentioned: "Many products can actually be reasonably priced when made in the US and are not necessarily more expensive than overseas."

Facing legal doubts about tariffs, Lutnick says this is about national security

Since the US Constitution stipulates that tariff rights are the responsibility of Congress, there are still doubts about whether Trump has the power to act alone.

Lutnick responded: "President Trump is exercising power based on the 'National Security Clause' previously authorized by Congress. Manufacturing pharmaceuticals and chips is not an ordinary trade issue, but a national security matter."

Not worried about US dollar weakening, focusing on negotiating tariff policies

Finally, regarding the US dollar index sliding and creating the worst performance in three years, Lutnick stated: "We are focusing on negotiating good conditions with various countries. President Trump has authorized us to negotiate and will definitely secure the best result for the American people."

US to Build "Strategic Manufacturing Chain," Continuously Urging Businesses to Return

In summary, the US government is not "compromising" this time, but rather separating semiconductors, pharmaceuticals, and other products from general commodity categories, upgrading them to non-negotiable strategic bargaining chips. They are demanding domestic manufacturing and pulling the entire manufacturing chain back to the United States. It appears that US-China trade has entered a new confrontational phase.