The US government has provided tariff exclusions for smartphones, computers, and various electronics largely imported from China, exempting them from President Donald Trump’s steep reciprocal duties of 125%.
In a communication to shippers, the US Customs and Border Protection agency released a list of tariff codes that will be exempt from such duties.
These exclusions are effective retroactively from April 5.
The US CBP identified 20 product categories, including the broad 8471 code, which encompasses all computers, laptops, disc drives, and automatic data processing units.
While the notice did not clarify the reasoning behind the Trump administration’s decision, the late-night exclusions are a much-needed reprieve for major US technology companies, such as Apple, Dell Technologies, and numerous other importers.
The exemption is solely applicable to Trump’s reciprocal tariffs on Chinese goods, which reached 125% this week, according to a White House representative.
Read more: Govt would not support DSTs on US big tech as countermeasure US tariffs pause ‘creates space for negotiations’ – EU
Trump’s previous 20% duties on all Chinese imports related to the fentanyl crisis remain in effect.
However, the official noted that Trump is set to initiate a new national security trade investigation into semiconductors soon, which could lead to additional tariffs in that sector.
In a related remark, White House spokesperson Karoline Leavitt emphasized that Trump has made it clear the US cannot depend on China for manufacturing critical technologies like semiconductors, chips, smartphones, and laptops.
She added that under Trump’s direction, major tech companies, including Apple, Nvidia, and Taiwan Semiconductor, “are working hard to bring their manufacturing back to the United States as soon as possible.”
US President Donald Trump imposed further tariffs on China earlier this week
High tariffs raise concerns over smartphone costs
However, the exemptions indicate an increasing recognition within the Trump administration regarding the burden that his tariffs would place on consumers grappling with inflation, particularly on sought-after items like smartphones, laptops, and electronics.
Even at a reduced 54% tariff on Chinese imports, analysts anticipated that the price of a high-end Apple iPhone could rise from $1,599 to $2,300.
With the tariffs at 125%, economists and analysts have suggested that US-China trade may significantly come to a standstill.
In 2024, smartphones topped US imports from China at $41.7 billion, followed closely by Chinese-made laptops at $33.1 billion, based on US Census Bureau data.
Donald Trump campaigned to reclaim the White House last year largely on the pledge to lower prices, which had surged due to inflation stemming from the COVID-19 pandemic and Russia’s war in Ukraine, undermining the economic standing of former President Joe Biden and his Democratic counterparts.
Nonetheless, Trump also promised as a candidate to enact the tariffs that have become integral to his economic strategy, dismissing the disruptions in financial markets and anticipated price hikes from the tariffs as necessary adjustments for reshaping the global economy and trading order.
His so-called “reciprocal tariffs” have incited fears of a US recession and prompted criticism from fellow Republicans who fear losing control of the US House and Senate in the forthcoming congressional elections to Democrats, who have sharply criticized Trump’s policies.
Last week, Trump paused heightened duties for 57 trading partners and the EU, allowing most countries to maintain a 10% tariff while they negotiate trade agreements with Washington.
During the weekend at his Florida residence, Trump told reporters that he was at ease with the elevated tariffs on China, expressing that he maintained a good relationship with President Xi Jinping and believed that positive outcomes could emerge from the ongoing trade conflict.
However, financial markets faced turmoil once again yesterday, as China mirrored Trump’s latest increase in tariffs on US imports to 125%, raising the stakes in a trade war that threatens to disrupt global supply chains.
US stocks concluded a volatile week on a positive note, but gold reached a record high during the session, while benchmark US 10-year government bond yields saw their largest weekly increase since 2001 concurrent with a drop in the dollar, indicating a lack of confidence in the US.
Chinese Commerce Minister Wang Wentao stated that US tariffs bring vast uncertainty and instability to the world
China claims tariffs will ‘inflict serious harm’ on impoverished nations
In the meantime, China’s Commerce Minister Wang Wentao informed the head of the World Trade Organization that US tariffs will “inflict serious harm” on poorer nations, according to a ministry statement.
The US and China have exchanged increasingly high tariffs this month, intensifying fears of a deepening trade war between the two largest economies in the world, which has precipitated turmoil in global markets.
Economists warn that the disruption of trade between the closely linked US and Chinese economies will elevate consumer prices and could trigger a global recession.
“These US ‘reciprocal tariffs’ will seriously harm developing nations, especially the least developed, and could even lead to a humanitarian crisis,” Mr. Wang remarked during a call yesterday with WTO chief Ngozi Okonjo-Iweala, according to the statement.
“The United States has continually implemented tariff measures, bringing significant uncertainty and instability globally, causing chaos both internationally and domestically within the US,” Mr. Wang added.
China has announced that its 125% tariffs on US goods will come into effect today—almost matching the staggering 145% levies imposed by the US on Chinese goods entering the United States.
However, China indicated that it would disregard any further tariffs imposed by President Trump, as it no longer makes economic sense for importers to purchase from the US, according to Chinese statements.
In the meantime, Taiwan’s government announced that it held initial tariff discussions with the United States and expected further talks to strengthen “strong and stable” trade relations.
Taiwan’s President Lai Ching-te mentioned that the island is a priority on “the first negotiating list of the US government” as he strives to protect its exporters from a 32% tariff.
Taiwan currently faces a 10% tariff, and Mr. Lai stated that discussions aim to negotiate a deal with the US to eliminate this tariff entirely.
Taiwan’s Office of Trade Negotiations reported that Taiwanese officials conducted a video conference the day before with “relevant US officials,” though they did not specify who they were.
The two parties “exchanged views on Taiwan-US reciprocal tariffs, non-tariff trade barriers, and a variety of other economic and trade issues, including export controls,” it added.
