President Donald Trump’s administration has exempted smartphones, computers, and some other electronic devices from new tariffs, including the 125% levies imposed on Chinese imports. The move marks the first significant reprieve in Trump’s tariffs on China, with one trade analyst describing it as a “game-changer.”
The exemptions, backdated to April 5, also include other electronic devices and components such as semiconductors, solar cells, and memory cards. The White House indicated that the exemptions aim to allow companies more time to move production to the U.S.
Dan Ives, global head of technology research at Wedbush Securities, posted on X that the exclusion of smartphones and chips is a “game-changer scenario” when it comes to China tariffs.
He added that big tech firms such as Apple, Nvidia, and Microsoft, along with the broader tech industry, can breathe a huge sigh of relief. Some estimates suggested that iPhone prices in the U.S. could have as much as tripled if costs were passed on to consumers. The U.S. is a major market for iPhones, and Apple accounted for more than half of its smartphone sales last year, according to Counterpoint Research.
Trump had planned for a host of steep tariffs on countries around the world to take effect this week. However, on Wednesday, he announced a 90-day pause for countries hit by higher U.S. tariffs—except China, whose tariffs he raised to 145%.
Trump exempts smartphones from tariffs
In a dramatic change of policy, Trump said all countries that had not retaliated against U.S. tariffs would receive the reprieve – and only face a blanket tariff of 10% – until July. The White House then said the move was a negotiating tactic to extract more favorable trade terms from other countries. However, U.S. Commerce Secretary Howard Lutnick said Sunday that the tariff exemptions announced Friday on electronics like smartphones and laptops are only a temporary reprieve until the Trump administration develops a new tariff approach specific to the semiconductor industry.
“They’re exempt from the reciprocal tariffs but they’re included in the semiconductor tariffs, which are coming in probably a month or two,” Lutnick told ABC’s “This Week” on Sunday. Trump added to the confusion hours later, declaring on social media that there was no “exception” at all because the goods are “just moving to a different bucket” and will still face a 20% tariff as part of his administration’s move to punish China for its role in fentanyl trafficking. Meanwhile, China has announced it is “assessing the situation” after multiple overtures from the United States, potentially signaling a move toward resuming trade talks.
However, China’s Commerce Ministry has indicated that ongoing tariffs imposed by the Trump administration continue to be a significant barrier. “If the U.S. side wants to talk, it must show sincerity and be prepared to correct its erroneous actions and cancel its unilateral tariff increases,” the ministry stated.
Image Credits: Photo by Adrien on Unsplash
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