Trump spares smartphones, other electronics from China tariffs
- 10 hours ago
President Donald Trump's administration granted exclusions from steep reciprocal tariffs to smartphones, computers and some other electronics imported largely from China, providing a big break to tech companies like Apple that rely on imported products.
In a notice to shippers, the US Customs and Border Protection agency published a list of tariff codes excluded from the import taxes. The exclusions are retroactive to 12:01am EDT (0401 GMT) on April 5.
The US CBP listed 20 product categories, including the broad 8471 code for all computers, laptops, disc drives and automatic data processing. It also included semiconductor devices, equipment, memory chips and flat panel displays. The notice did not provide an explanation for the move, but the late-night exclusion provides welcome relief to major technology firms such as Apple, Dell Technologies and many other importers.
Trump's action also excludes the specified electronics from his 10% "baseline" tariffs on goods from most countries other than China, easing import costs for semiconductors from Taiwan and Apple iPhones produced in India.
Wedbush Securities analyst Dan Ives called the announcement "the most bullish news we could have heard this weekend."
"There is still clear uncertainty and volatility ahead with these China negotiations.... Big Tech firms like Apple, Nvidia, Microsoft and the broader tech industry can breathe a huge sigh of relief this weekend into Monday," Ives said in an industry note.
Many tech company CEOs have embraced Trump as he begins his second term, attending his January 20 inauguration in Washington and celebrating with him afterward. Apple CEO Tim Cook hosted a pre-inaugural ball and has visited Trump at his home in Florida.
For the Chinese imports, the exclusion only applies to Trump's reciprocal tariffs, which climbed to 125% this week, according to a White House official. Trump's prior 20% duties on all Chinese imports that he said were related to the US fentanyl crisis remain in place. But the official said Trump will launch a new national security trade investigation into semiconductors soon that could lead to other new tariffs.
White House spokesperson Karoline Leavitt said in a statement that Trump has made clear the US cannot rely on China to manufacture critical technologies such as semiconductors, chips, smartphones and laptops. But she said that at Trump's direction, major tech firms, including Apple and chipmakers Nvidia and Taiwan Semiconductor "are hustling to onshore their manufacturing in the United States as soon as possible."
TARIFF PAIN The exemptions suggest an increasing awareness within the Trump administration of the pain his tariffs could inflict on inflation-weary consumers.
Even at a lower 54% tariff rate on Chinese imports, analysts predicted the price of a top-end Apple iPhone could jump to $2,300 from $1,599. At 125%, economists and analysts have said U.S.-China trade could largely halt.
Smartphones were the top US import from China in 2024, totaling $41.7 billion, while Chinese-built laptops were second, at $33.1 billion, according to US Census Bureau data.
Apple recently chartered cargo flights to ferry 600 tons of iPhones, or as many as 1.5 million, to the US from India, after it stepped up production there in an effort to beat Trump's tariffs, Reuters reported on Friday.
Reuters