The United States President, Donald Trump, has removed smartphones, laptops, and other electronic devices from a new round of heavy tariffs aimed at Chinese imports.
US Customs and Border Protection announced that the items would not be affected by Trump’s 10% global tariff or the much higher 125% import tax on Chinese products.
The decision is a major relief for big tech companies like Apple, Microsoft, and Nvidia. It also marks the first major exemption in Trump’s trade war with China.
Speaking to journalists on Air Force One while heading to Miami on Saturday, Trump said more details would be shared early next week.
“We’ll be very specific,” he said. “But we’re taking in a lot of money. As a country we’re taking in a lot of money.”
Some of the items now exempted include semiconductors, solar cells, and memory cards. The change applies to imports made from April 5.
Dan Ives, a tech analyst at Wedbush Securities, called the move a “game-changer” and said, “This is the dream scenario for tech investors. Smartphones, chips being excluded is a big win.”
The White House explained that the exemptions were made to give companies time to move their production from China to the US.
White House Press Secretary Karoline Leavitt said, “President Trump has made it clear America cannot rely on China to manufacture critical technologies such as semiconductors, chips, smartphones, and laptops.”
She added that American companies are now working fast to shift production back home.
However, these electronic items will still face a 20% tariff linked to China’s role in the fentanyl crisis, according to White House Deputy Chief of Staff on Policy, Stephen Miller.
Reports had earlier warned that if the tariffs stayed, the prices of iPhones in the US could have tripled. About 80% of iPhones sold in the US are made in China, while the rest are made in India.
Trump had earlier raised tariffs on Chinese goods to 145%, saying it was a response to China’s own 84% levy on US items.
He added that countries which did not fight back against the tariffs would now face only a 10% tariff for the next 90 days. This, he said, is meant to help the US get better trade deals.
Trump insists that his trade policies are meant to fix global trade unfairness and bring back jobs to the US.
