U.S. President Donald Trump’s administration has announced a crucial exemption for smartphones and computers from newly imposed tariffs, amid mounting concerns from the tech industry over soaring gadget prices. This decision comes just days after the administration raised tariffs on Chinese imports to a staggering 125%, sparking fears of a ripple effect on the cost of consumer electronics.
According to a notice published by U.S. Customs and Border Protection late Friday, smartphones, computers, and various other electronic components such as semiconductors, solar cells, and memory cards will be excluded from both the 10% global tariff and the heightened Chinese import taxes.
The move follows intense lobbying by major U.S. tech firms, including Apple and Samsung, who warned that steep tariffs could drastically increase the prices of popular devices, most of which are manufactured in China. Counterpoint Research data shows that Apple, which dominated U.S. smartphone sales last year, relies on China for approximately 80% of its iPhone production for the American market.
In response to the evolving trade climate, Apple has been accelerating efforts to diversify its supply chain. India and Vietnam have emerged as alternative production hubs, with Apple reportedly ramping up iPhone production in India in recent weeks.
Trump’s latest tariff policy originally aimed to impose sweeping import taxes on nearly all foreign goods, with Chinese products facing the highest penalties due to what he described as China’s retaliatory stance Beijing recently announced its own 84% levy on U.S. goods. However, in a dramatic reversal, Trump announced a 90-day pause for all non-retaliating countries, softening the initial hardline stance. Nations that have not responded with counter-tariffs will now face a reduced blanket tariff of 10% until at least July.
This exemption is seen as a temporary relief for consumers and tech companies alike, providing breathing room for firms dependent on Chinese manufacturing. However, with trade tensions still high, the global tech industry continues to brace for further uncertainty in the months ahead.
