U.S. Customs and Border Protection quietly made the announcement on April 11. the Trump administration has unveiled a major shift in its proposed tariff strategy.
Since Trump’s so-called “Liberation Day” earlier this month, the U.S. has been locked in a growing trade war—most intensely with China. While other nations faced customized tariff hikes, they’re now subject to a 10% levy on imports, which has been temporarily paused for 90 days.
China, however, isn’t getting the same reprieve. Amid the ongoing tit-for-tat between the two countries, Trump has repeatedly raised tariffs on Chinese goods.
Most recently, on April 9, he announced a staggering 125% tax on Chinese exports—on top of the 20% already in place.
In response, China hit back with its own 125% tax on U.S. exports. Beijing’s State Council Tariff Commission criticized the move, stating (via Al Jazeera): “The U.S.’s imposition of abnormally high tariffs on China seriously violates international trade rules, basic economic laws, and common sense.”
The escalating tit-for-tat between the two nations has rattled the stock market and sparked fears of steep price hikes on everyday goods—especially iPhones.
Although Apple is an American company, around 80% of iPhones sold in the U.S. are manufactured in China, according to the BBC.
Amid growing concerns, the Trump administration quietly announced late on April 11 that smartphones, computers, and select other products—including some from China—will be exempt from the increased tariffs.
According to CNBC, U.S. Customs and Border Protection has issued a notice confirming that a wide range of tech devices and components will be exempt from the reciprocal tariffs imposed by Trump.
Among the exempted items are semiconductors, solar cells, flat-panel TV displays, flash drives, and memory cards.
The decision has been welcomed by tech and business analysts. Dan Ives, global head of technology research at Wedbush Securities, told CNBC:
“This is a dream scenario for tech investors. Excluding smartphones and chips is a game-changing move when it comes to the China tariffs.”
Ives added, “I think, in the end, major tech CEOs made their voices heard—and the White House had no choice but to listen. If these tariffs had gone through, it would’ve been Armageddon for big tech.”
Before Trump’s apparent reversal, Apple had reportedly been flying planeloads of iPhones into the U.S. to avoid the looming hikes, according to Axios. But now, both CEO Tim Cook and consumers can breathe a temporary sigh of relief.
It remains unclear whether these exemptions will be permanent or just a short-term reprieve.
