Trump Trade Adviser Insists New Tariff Exclusion Is 'Not an Exclusion'

President Donald Trump's top trade adviser Peter Navarro said on Sunday that the updated list of products spared from "reciprocal" tariffs, including smartphones, computers and electronic chips, is "not an exclusion," during an interview with NBC News' Kristen Welker, despite official government language characterizing it as such.

Newsweek has reached out to the trade division of the U.S. Customs and Border (CPB) Protection via email for comment and clarification on Sunday.

Why It Matters

The Trump administration's shifting tariff policy, marked by sudden impositions, pauses and reinstatements, has raised concerns among Americans over the unpredictability of trade measures, the burden of steep duties, and heightened market volatility. The flurry of tariff changes and approaching deadlines has left many trying to keep up.

Members of the Trump administration have faced criticism for issuing conflicting statements on economic and immigration policies, fueling concerns about a lack of coordination and thoroughness across federal agencies.

On Friday, CBP updated a list of products to be "excluded" from reciprocal tariffs, which largely would impact imports from China. The U.S. and China remain in a tit-for-tat tariff war, with Trump hiking the 104 percent tariffs on China to 125 percent on Wednesday after Beijing hit back at the U.S. with an 84 percent additional levy earlier in the day. Trump's total tariffs now stand at 145 percent on Chinese goods, while China has imposed a 125 percent tariff, dismissing Trump's strategy as "a joke."

China manufactures a significant share of electronics, serving as a production hub for many of the world's—and America's—largest technology companies. Firms including Apple, which assembles most iPhones in China, rely heavily on Chinese supply chains and production.

What to Know

During an interview appearance on NBC News' Meet the Press, Welker asked Navarro about Trump's tariff strategy, following the rollout of new "reciprocal" tariffs Wednesday—most of which were paused just hours later for 90 days. Tariffs on Chinese goods remain in effect.

Navarro told Welker that what some are calling chaos over the tariffs is "unfolding exactly like we thought it would in a dominate scenario," adding that the administration and its top advisers knew "that a lot of countries would come right to us and want to bargain. We got 90 dealsin 90 days possibly pending here."

After some of the stock market's worst days in years, which erased trillions in value following Trump's tariff announcement, the president's decision to pause most of the measures sent markets soaring. Several administration officials praised the move, with White House press secretary Karoline Leavitt framing it as a tactic in line with "the art of the deal."

Welker pointed out that top trade and Trump officials previously said "there would not be exclusions, and yet just yesterday, there were exclusions. So, is there in fact a plan, or is the president making this up as he goes along?"

Her comments refer to an updated tariff list released Friday night that includes 20 exemptions from Trump's so-called reciprocal tariffs. The CBP list is titled, "Updated Guidance- Reciprocal Tariff Exclusion for Specified Products."

The tech-heavy list includes Harmonized Tariff Schedule of the United States (HTSUS) codes for semiconductors, laptops, smartphones and other electronics. The exemption list includes products the U.S. heavily relies on for overseas production, with limited domestic manufacturing capacity and high consumer demand.

Navarro replied to Welker, "So the policy is no exemptions, no exclusion, the policy is in effect," with Welker jumping in, "but there were exclusions."

"There were not exclusions," Navarro responded, who later reiterated "it's not an exclusion," with Welker noting, "The White House called it an exclusion."

According to the updated guidance on Friday, importers should utilize a specific heading to report their products and "declare the exception from the reciprocal tariff." If importers had purchased goods that have left the overseas warehouse on or after April 5, they can file for exemption still.

Another administration official had a different takeaway on Sunday, with U.S. Secretary of Commerce Howard Lutnick confirming to ABC News' Jonathan Karl on This Week that these products are "exempt from the reciprocal tariffs" now, however, he noted they are likely to come under different tariffs soon.

What People Are Saying

U.S. Secretary of Commerce Howard Lutnick said on ABC News' This Week on Sunday regarding the electronics exemptions: "We can't be beholden and rely upon foreign countries for fundamental things that we need. So, this is not like a permanent sort of exemption. He's [Trump] just clarifying that these are not available to be negotiated away by countries. These are things that are national security that we need to be made in America."

Dan Ives, global head of technology research at Wedbush Securities, told CNBC on Saturday: "This is the dream scenario for tech investors. Smartphones, chips being excluded is a game changer scenario when it comes to China tariffs."

He said that tariffs have been a "black cloud over tech since the day of liberation, because no sector was going to be more hurt than big tech."

Michael McFaul, former U.S. ambassador to Russia, said in an X, formerly Twitter, post about the exemptions on Saturday: "More caving (thank goodness). What is the strategy here? President Donald Trump's administration exempted smartphones, computers and other electronics from its so-called reciprocal tariffs, potentially cushioning consumers from sticker shock."

Vice President JD Vance said in an X post on Thursday: "There is a category of DC insider who wants to fight an actual war with China but also wants China to manufacture much of our critical supply. This is insane. President Trump wants peace, but also wants fair trade and more self-reliance for the American economy."

President Donald Trump, in a Wednesday post on Truth Social: "Based on the lack of respect that China has shown to the World's Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately. At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable."

Billionaire and top Trump advisor Elon Musk said in an X post on April 8: "Navarro is truly a moron." In a follow up post, he added, "Navarro is dumber than a sack of bricks."

China's Finance Ministry in a statement: "The U.S. escalation of tariffs on China is a mistake on top of a mistake, which seriously infringes on China's legitimate rights and interests and seriously undermines the rules-based multilateral trading system."

Lin Jian, a spokesperson for the Chinese Foreign Ministry, told reporters Thursday: "Tariff and trade wars have no winner. China does not want to fight these wars but is not scared of them. We will not sit idly by when the Chinese people's legitimate rights and interests are denied...If the U.S. is determined to fight a tariff and trade war, China's response will continue to the end."

What Happens Next?

The various technology exemptions are already in effect, according to the CBP document.

Meanwhile, trade ties between the United States and China remain strained over tariff policies.