The U.S. government has decided to exempt smartphones, computers, and various electronics imported primarily from China from President Donald Trump’s hefty 125% tariffs. U.S. Customs and Border Protection announced this update in a notice to shippers, stating that the exclusions are retroactive to April 5, at 12:01 a.m. EDT. The list includes 20 product categories, notably a broad category for all computers, laptops, and data processing devices, among others.
While the reasons behind the exemption were not made clear, this decision is a relief for major tech companies like Apple and Dell Technologies, allowing them to mitigate the burdensome costs of these tariffs. Additionally, it has excluded the electronics from a baseline 10% tariff that affects goods from countries other than China, which may reduce import expenses for semiconductors from Taiwan and iPhones manufactured in India. Nonetheless, the exemption only applies to the reciprocal tariffs, which have recently escalated to 125%.
Existing 20% duties tied to the U.S. fentanyl crisis remain in force. A White House official indicated that Trump would soon initiate a national security trade investigation into semiconductors that could result in further tariffs. The tariff exemptions signal an acknowledgment within the Trump administration of the pressures these taxes could place on inflation-weary consumers, particularly concerning electronics like smartphones and laptops.
Analysts noted that even a lower tariff could significantly raise the price of top-end Apple iPhones, with potential increases causing fears of recession and criticism from fellow Republicans. Financial markets have experienced volatility due to the escalating trade tensions, with the stakes rising as China’s retaliatory tariffs on U.S. imports reached similar heights. While Trump remains confident in his tariff strategy, concerns about global supply chain disruptions continue to loom large.