US President Donald Trump’s administration has officially exempted smartphones, computers, and other key electronics from the latest round of steep tariffs on Chinese imports—some as high as 125%.
The decision, published late Friday by US Customs and Border Protection, clarifies that these goods will not be subject to Trump’s global 10% tariff, nor to the significantly larger tariffs specifically targeting imports from China.
This exemption comes amid growing concern from US tech giants over rising gadget prices. Many of these products—including iPhones and other consumer electronics—are primarily manufactured in China.
The exclusions, retroactively applied from April 5, also cover a broad range of electronic components, including semiconductors, memory cards, and solar cells, further easing the burden on tech companies and consumers alike.
Relief for the Tech Sector
This marks the first major exemption to Trump’s tariff strategy on China, providing a temporary reprieve for major US tech firms like Apple, which relies heavily on Chinese manufacturing.
“And I think something positive is going to come out of that,” Trump said on Friday while speaking to reporters from his Florida residence, reaffirming his strong relationship with Chinese President Xi Jinping.
Though the exemptions are in place, it’s unclear whether Chinese technology imports might still face a separate 20% tariff announced earlier but not yet implemented. The White House has not commented on that detail as of press time.
Potential Price Surge Averted
Estimates had warned that if the full tariff costs were passed on to consumers, iPhone prices could have tripled, significantly impacting US buyers.
“This takes off a huge black cloud overhang for now over the tech sector and the pressure facing U.S. Big Tech,” said Wedbush analyst Dan Ives, according to the Associated Press.
Apple remains the dominant smartphone brand in the US, responsible for more than 50% of smartphone sales last year, as reported by Counterpoint Research. The company manufactures approximately 80% of iPhones destined for US markets in China, with the remaining 20% produced in India.
Diversifying Supply Chains
In recent years, companies like Apple and Samsung have made efforts to diversify their supply chains beyond China. India and Vietnam have emerged as leading alternatives for smartphone manufacturing.
Reports suggest Apple has accelerated production at its Indian plants in response to the shifting trade environment.
Tariff Reversal and Broader Trade Strategy
Earlier in the week, Trump announced a 90-day pause on new tariffs for most nations—excluding China. For China, tariffs were increased to 145%, a retaliatory measure after China imposed its own 84% levy on US goods.
The administration clarified that countries not retaliating against US tariffs would temporarily face a blanket 10% tariff until July, as part of a broader negotiation tactic.
Trump has consistently argued that the tariffs are designed to correct imbalances in global trade, restore manufacturing jobs, and bring industrial production back to American soil.