Business
US Exempts Smartphones and Electronic Devices from Chinese Tariffs, Offering Relief to Tech Industry
US exempts smartphones, computers, and electronics from reciprocal tariffs, easing concerns for tech companies. Move seen as significant reprieve in US-China trade tensions, benefiting big tech firms like Apple and Nvidia.
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Originally published by nationnews.com (opens in new tab)
US President Donald Trump’s administration has exempted smartphones, computers and some other electronic devices from “reciprocal” tariffs, including the 125% levies imposed on Chinese imports.
US Customs and Border Patrol published a notice late on Friday explaining the goods would be excluded from Trump’s 10% global tariff on most countries and the much larger Chinese import tax.
The move comes after concerns from US tech companies that the price of gadgets could skyrocket, as many of them are made in China.
This is the first significant reprieve of any kind in Trump’s tariffs on China, with one trade analyst describing it as a “game changer scenario”.
The exemptions – backdated to 5 April – also include other electronic devices and components, including semiconductors, solar cells and memory cards.
“This is the dream scenario for tech investors,” Dan Ives, who is the global head of technology research at Wedbush Securities, posted on X. “Smartphones, chips being excluded is a game changer scenario when it comes to China tariffs.”
Big tech firms like Apple, Nvidia, Microsoft and the broader tech industry can breathe a huge sigh of relief this weekend, he added.
The White House indicated that the exemptions were made to ensure companies had more time to move production to the US
“President Trump has made it clear America cannot rely on China to manufacture critical technologies such as semiconductors, chips, smartphones, and laptops,” White House Press Secretary Karoline Leavitt said in a statement.
“At the direction of the president, these companies are hustling to onshore their manufacturing in the United States as soon as possible.”
Trump, who is spending the weekend at his Florida home, told reporters on Friday he was comfortable with the high tariffs on China.
“And I think something positive is going to come out of that,” he said, touting his relationship with Chinese President Xi Jinping.
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 suggest iPhone prices in the US could as much as triple 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.
