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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.<\/p>\n
In a notice, US Customs and Border Patrol said that the goods would be excluded from Trump’s 10% global tariff on most countries and the much larger Chinese import tax. <\/p>\n
It marks the first significant reprieve of any kind in Trump’s tariffs on China, with one trade analyst describing it as a “game-changer scenario”.<\/p>\n
Late on Saturday, while travelling to Miami, Trump said he would give more details of the exemptions at the start of next week.<\/p>\n<\/div>\n
“We’ll be very specific,” he told reporters on Air Force One. “But we’re taking in a lot of money. As a country we’re taking in a lot of money.”<\/p>\n
The move came after concerns from US tech companies that the price of gadgets could skyrocket, as many of them are made in China. <\/p>\n
Exemptions – backdated to 5 April – also include other electronic devices and components, including semiconductors, solar cells and memory cards. <\/p>\n
“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.”<\/p>\n
Big tech firms such as Apple, Nvidia, Microsoft and the broader tech industry can breathe a huge sigh of relief this weekend, he added.<\/p>\n
The White House indicated the exemptions were made to ensure companies had more time to move production to the US. <\/p>\n
“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. <\/p>\n
“At the direction of the president, these companies are hustling to onshore their manufacturing in the United States as soon as possible.”<\/p>\n
Trump, who is spending the weekend at his Florida home, told reporters on Friday he was comfortable with the high tariffs on China.<\/p>\n
“And I think something positive is going to come out of that,” he said, touting his relationship with Chinese President Xi Jinping.<\/p>\n
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.<\/p>\n
Some estimates suggested iPhone prices in the US could have as much as tripled if costs were passed on to consumers.<\/p>\n
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.<\/p>\n
It says as much as 80% of Apple’s iPhones intended for US sale are made in China, with the remaining 20% made in India.<\/p>\n
Like its fellow smartphone giant Samsung, Apple has been trying to diversify its supply chains to avoid an over-reliance on China in recent years.<\/p>\n
India and Vietnam emerged as frontrunners for additional manufacturing hubs.<\/p>\n
As the tariffs took effect, Apple reportedly looked to speed up and increase its production of India-produced devices in recent days.<\/p>\n
Trump had planned for a host of steep tariffs on countries around the world to take effect this week.<\/p>\n
But on Wednesday he announced he would implement a 90-day pause for countries hit by higher US tariffs – except China, whose tariffs he raised to 145%. <\/p>\n
Trump said the tariff increase for China was because of the country’s readiness to retaliate with its own 84% levy on US goods. <\/p>\n
In a dramatic change of policy, Trump said all countries that had not retaliated against US tariffs would receive the reprieve \u2013 and only face a blanket tariff of 10% \u2013 until July.<\/p>\n
The White House then said the move was a negotiating tactic to extract more favourable trade terms from other countries.<\/p>\n
Trump has said his import taxes will address unfairness in the global trading system, as well as bring jobs and factories back to the US.<\/p>\n<\/div>\n