Trump Exempts Smartphones, Other Electronics From Chinese Tariffs
The administration of US President Donald Trump has announced that smartphones, computers, and several other electronic devices will be exempt from "reciprocal" tariffs, which include the 125% duties placed on imports from China.
According to a notice from US Customs and Border Protection, these items will not be subject to Trump's 10% global tariff affecting most countries, nor the significantly higher tax on Chinese imports.
This decision represents the first notable relief from Trump's tariffs on China, with one trade analyst referring to it as a "game-changer scenario."
While en route to Miami on Saturday, Trump mentioned that further details regarding the exemptions would be provided at the beginning of the following week.
"We'll be very specific," he stated to reporters aboard Air Force One. "But we're generating substantial revenue. As a nation, we are bringing in a lot of money."
The exemptions, which are retroactive to April 5, also encompass various other electronic devices and components, such as semiconductors, solar cells, and memory cards.
"This is an ideal situation for tech investors," remarked Dan Ives, the global head of technology research at Wedbush Securities, on X. "The exclusion of smartphones and chips is a transformative development regarding China tariffs."
Major technology companies like Apple, Nvidia, and Microsoft, along with the wider tech sector, can now find some relief, he noted.
The White House suggested that these exemptions were intended to provide companies with additional time to relocate their production to the United States.
"President Trump has made it clear that America cannot depend on China for the manufacturing of essential technologies such as semiconductors, chips, smartphones, and laptops," stated White House Press Secretary Karoline Leavitt.
"Under the president's guidance, these companies are working diligently to bring their manufacturing operations back to the United States as quickly as possible."
During the weekend at his Florida residence, Trump expressed to reporters on Friday that he was comfortable with the elevated tariffs on imports.
These electronic goods are still subject to the 20% tariff on China related to fentanyl, White House Deputy Chief of Staff on Policy Stephen Miller posted on X.
Some estimates suggested iPhone prices in the US could have as much as tripled if costs were passed on to consumers.
The US is a major market for iPhones, while Apple accounted for more than half of its smartphones sales last year, according to Counterpoint Research.
It says as much as 80% of Apple's iPhones intended for US sale are made in China, with the remaining 20% made in India.
Like its fellow smartphone giant Samsung, Apple has been trying to diversify its supply chains to avoid an over-reliance on China in recent years.
India and Vietnam emerged as frontrunners for additional manufacturing hubs.
As the ariffs took effect, Apple reportedly looked to speed up and increase its production of India-produced devices in recent days.
Trump had planned for a host of steep tariffs on countries around the world to take effect this week.
But on Wednesday he announced he would implement a 90-day pause for countries hit by higher US tariffs - except China, whose tariffs he raised to 145%.
Trump said the tariff increase for China was because of the country's readiness to retaliate with its own 84% levy on US goods.
In a dramatic change of policy, Trump said all countries that had not retaliated against US tariffs would receive the reprieve – and only face a blanket tariff of 10% – until July.
The White House then said the move was a negotiating tactic to extract more favourable trade terms from other countries.
Trump has said his import taxes will address unfairness in the global trading system, as well as bring jobs and factories back to the US.
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