Summary: Tech fans, you can breathe easy. Donald Trump’s administration has announced an exemption from tariffs on smartphones and computers, as well as other electronic products. The exemption also includes the huge 145% tariff on imports from China, everyone’s main concern.
If you like tech, like smartphones or PCs, you may be worried about the potential effects of Trump’s tariffs on your favorite gadgets. For example, some estimated that iPhones could triple in price as a result. However, it seems you can breathe easy, as smartphone and computer brands will be exempt from Trump’s tariffs.
Recently, Trump announced a series of import tariffs for multiple regions. According to the new administration in Washington, this measure seeks to bring jobs and manufacturing back to the United States. The tariffs also seek to address what Trump considers an “unfair” situation for the United States in the current global trading system.
The mildest tariff was 10% for imports from most countries. However, the most impactful was the 145% tariff on imports from China. This large figure comes in response to China’s intentions to respond to the United States with its own 84% tariff on imports from the United States. The US first announced a 20% tariff for China but then followed with an additional 125%. Trump also paused the implementation of tariffs for 90 days for many countries seeking negotiations.
The US government exempts smartphones, computers, and other tech products from Trump’s tariffs
Now, the US Customs and Border Patrol has confirmed that smartphones, computers, and some other electronic products are exempt from the tariffs. Yes, this includes the 145% tariff imposed on China. The move comes as a major relief to a technology industry that relies heavily on factories in China for production.
Recently, Trump opened the door to exempting some companies from the tariffs. Trump would have relied on his “instinct” to decide which US firms deserved such a concession. The main goal was to address the situation of companies hit harder than others, such as Apple. However, the US president is opting for a different approach. Instead of exempting specific companies under arbitrary criteria, Washington is freeing entire commercial sectors from tariffs.
An analyst describes the move as a “game-changer scenario,” as reported by the BBC. The exemptions are retroactive to April 5. The measure also applies to other tech sectors such as semiconductors, solar cells, and memory cards.
“This is the dream scenario for tech investors,” said Dan Ives, global head of technology research at Wedbush Securities, on Twitter. “Smartphones and chips being excluded is a game-changer scenario when it comes to China tariffs,” he added.
A measure to give companies time to move their production to the US
It’s noteworthy that the tariff exemption for these tech sectors aims to be temporary. “President Trump has made it clear America cannot rely on China to manufacture critical technologies such as semiconductors, chips, smartphones, and laptops,” reads a White House statement. “At the direction of the president, these companies are hustling to onshore their manufacturing in the United States as soon as possible.”
So, the new measure appears to be a temporary concession allowing companies to move their production—or most of it—to the United States. It’s also worth noting that there is still a tariff on these products. This is the 20% tariff tax related to fentanyl to China.
Meanwhile, big tech companies have been exploring options to diversify their production chains. Countries like India and Vietnam are emerging as the leading candidates. In fact, Apple already manufactures 20% of iPhones destined for the United States in India.
