The Trump administration has decided to exempt smartphones, computers, and other electronics from its “reciprocal tariffs,” potentially alleviating the burden on consumers and benefiting electronics companies like Apple and Samsung. These exclusions, announced by U.S. Customs and Border Protection, narrow the application of Trump’s 125% China tariff and the 10% global tariff on most other countries.
The exempted products include smartphones, laptop computers, hard drives, computer processors, and memory chips. These items are generally not manufactured in the U.S., and establishing domestic production would require significant time. The exclusions also extend to machines used in semiconductor manufacturing, which is significant for companies like Taiwan Semiconductor Manufacturing Co.
However, the tariff reprieve may be temporary, as the exclusions stem from an initial order that prevented tariffs from stacking cumulatively. This suggests that these products may soon be subject to different tariffs, potentially lower for China. For instance, semiconductors were previously considered for a specific tariff, though the rate remains unclear.