In a surprising move, the Trump administration announced late Friday that smartphones, computers, semiconductors, and other electronics will be exempt from the recently imposed “reciprocal” tariffs, offering significant relief to tech giants like Apple, Nvidia, and Samsung, as well as American consumers.
The exemptions, published by the U.S. Customs and Border Protection office, cover imports primarily from China, sparing these goods from a steep 125% tariff on Chinese products and a baseline 10% levy on imports from most other countries.
The decision, retroactive to 5 April, marks a notable softening of President Donald Trump’s aggressive trade strategy amid escalating tensions with Beijing.
The exemptions include a broad range of products under tariff code 8471, encompassing laptops, disc drives, and data processing equipment, as well as semiconductor devices, memory chips, flat-panel displays, and equipment used in chip manufacturing.
Analysts suggest the move reflects growing awareness within the administration of the potential economic fallout from blanket tariffs, particularly on inflation-weary consumers.
Without these exemptions, experts estimated that devices like the iPhone 16 Pro Max, currently retailing at $1,199, could have surged to nearly $1,900, threatening affordability and demand for popular electronics.
Tech industry leaders welcomed the decision, with companies like Taiwan Semiconductor Manufacturing Co. (TSMC), Intel, and ASML benefiting from the exclusion of chipmaking equipment.
The exemptions align with Trump’s push to bolster domestic manufacturing, as firms like Apple and Nvidia accelerate efforts to onshore production, supported by incentives from the 2022 Chips and Science Act.
However, critics argue that ramping up U.S.-based production for complex electronics could take years, making the exemptions a pragmatic stopgap to avoid supply chain disruptions.
The announcement follows a turbulent week of trade policy reversals. After imposing sweeping tariffs that rattled financial markets, Trump partially paused levies on other goods, citing negotiations with trading partners.
China, unyielding, raised its tariffs on U.S. imports to 125% in retaliation, intensifying fears of a full-scale trade war.
White House Press Secretary Karoline Leavitt defended the exemptions, stating, “President Trump is ensuring America reduces reliance on China for critical technologies while protecting consumers.”
While tech investors, including Wedbush Securities’ Daniel Ives, hailed the move as a “game-changer,” uncertainty lingers. The exemptions are seen as temporary, with Trump hinting at targeted tariffs in the future, keeping the tech sector on edge as global trade dynamics evolve.
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