Relief for tech giants. But the story isn’t over.
The Trump administration has exempted smartphones, computers, and a range of other electronics from its harshest tariffs on Chinese goods. The decision, quietly posted by US Customs and Border Protection on Friday, is retroactive to April 5.
The exemptions (on these electronics) removed the latest 125% layer of tariffs on China. But earlier tariffs, like the 20% fentanyl-related duty, still apply. So while the pressure has eased, it hasn’t completely disappeared. Even so, the measure shields major imports that sit at the center of both daily life and the supply chains of companies like Apple, Dell, and Nvidia.
And it’s not just China. In some cases, the exclusions also apply to a 10 percent flat tariff recently placed on goods from most countries. In practice, this means electronics built in India, Taiwan, or elsewhere could be spared too.
125% reciprocal tariff on Chinese electronics – exempted
20% fentanyl-related tariff on Chinese goods – still in effect- 10% baseline tariff on electronics from other countries – exempted
Why This Isn’t Just About Tech
Smartphones were the number one US import from China last year, totaling over $41 billion. Laptops followed closely at just over $33 billion. These aren’t luxury items anymore. They’re everyday tools. Raising their prices during an already fragile inflation environment would have landed badly.
Apple, sensing what was coming, chartered planes to fly in nearly 1.5 million iPhones from India before the deadline — around 90% of Apple’s iPhone production and assembly still takes place in China, despite ongoing efforts to shift more work to India.
Nvidia and Microsoft were also on edge, along with countless suppliers, distributors, and retailers.
A Political Tightrope
Trump, months into his second term, is walking a fine line. He campaigned on bringing production back home. Tariffs were his chosen stick. But he also promised to bring prices down, which gets harder when you pile taxes on popular consumer goods.
The carve-outs may be an attempt to strike balance. The administration says these exemptions give companies more time to move production to the US Whether that happens is still uncertain. Electronics manufacturing isn’t a light switch. The supply chains are entrenched, and shifting them is slow and expensive.
Investors Exhale, For Now…
Markets may breathe easier after the announcement. Tech stocks are expected to bounce back on Monday following a rough stretch. Pretty much no one likes surprise tariffs. But surprise exemptions? That’ll do.
Still, the move doesn’t erase the uncertainty. It’s been a week of extreme tit-for-tat tariffs between the US and China.
Put simply, the policy swings fast. There’s not much room for long-term planning when the rules keep shifting week to week.
Not a Full Reprieve
As noted earlier in this article, the 20 percent tariff on Chinese electronics tied to fentanyl concerns is still in effect. And it should be noted that the Trump administration is reportedly preparing a Section 232 national security review into semiconductor imports. Whether this could lead to another round of tariffs is uncertain (it might not), but it could target the same companies that just caught a break.
It’s hard to say whether this latest move is a strategy shift or just another pivot in a familiar cycle. Trump has used tariffs to push for leverage. He’s also reversed them when the blowback got too loud. Is this move just more of the same?
One Last Thing
For now, tech firms and consumers can relax (or at least breathe a little). Prices on phones and laptops won’t spike for consumers just yet. But this isn’t the end. Tariffs are still Trump’s go-to move. And his trade strategy isn’t exactly built on predictability.
It’s hard to call this anything but mass uncertainty.
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