US President Trump exempts smartphones, computers, and other electronics from new tariffs, following concerns from tech companies about rising gadget prices.
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| US President Trump announces exemption for smartphones, computers, and other electronics from tariffs, a move aimed at protecting tech companies and consumers. Image: CH |
Washington, D.C., USA — April 14, 2025:
In a significant development for the tech industry, US President Donald Trump’s administration has exempted smartphones, computers, and other electronic devices from the newly imposed tariffs on Chinese imports. The decision came after concerns from US tech companies that the tariffs could lead to a sharp rise in the price of gadgets, many of which are manufactured in China. The US Customs and Border Patrol published a notice late on Friday, clarifying that smartphones, computers, and several other electronic components would be excluded from both the 10 percent global tariff and the 125 percent tariff imposed on Chinese imports.
This exemption includes a wide range of electronic products, such as semiconductors, memory cards, and solar cells, which are critical to the production of devices like smartphones and laptops. The move is expected to benefit tech giants like Apple and Samsung, who rely heavily on Chinese manufacturing. Apple, for instance, has been facing the challenge of a highly concentrated supply chain in China, with over 80 percent of its iPhones intended for the US market being made there. As of last year, Apple accounted for more than half of the smartphone sales in the US, according to Counterpoint Research.
In recent years, Apple and other smartphone manufacturers have been working to diversify their supply chains, with India and Vietnam emerging as potential alternatives to China for production. Apple, in particular, has reportedly been accelerating its production efforts in India to avoid heavy reliance on Chinese manufacturing.
This latest move by the Trump administration comes on the heels of an earlier decision to impose a 10 percent tariff on most countries worldwide, excluding China. However, on Wednesday, Trump reversed course and announced a 90-day pause for countries affected by the tariffs, except China, whose tariffs were raised to 145 percent. The tariff hike on China was attributed to the country's readiness to retaliate with an 84 percent levy on US goods.
In a dramatic shift in policy, President Trump stated that all countries that had not retaliated against US tariffs would be granted a reprieve until July, with a blanket tariff of 10 percent applied instead. This reprieve is seen as part of a broader strategy by the White House to negotiate more favorable trade terms with other countries. The move is likely to have a profound impact on global trade dynamics and the technology sector, where supply chains are highly interdependent.