The Trump administration has announced that smartphones, computers, and other electronics will be exempt from its reciprocal tariffs, providing significant relief to global technology manufacturers such as Apple and Nvidia, albeit potentially temporarily.
The exemptions, released on Friday by US Customs and Border Protection, limit the impact of tariffs by excluding these products from the hefty 125 percent tariff imposed on Chinese goods, as well as the baseline 10 percent tariff applied to imports from most other countries.
The updated exclusions cover popular consumer electronics, including smartphones, laptops, hard drives, processors, memory chips, and flat-screen displays, which are predominantly manufactured outside the United States.
This decision is expected to be well-received by consumers, some of whom had rushed to purchase new iPhones and other devices in response to fears that tariffs would lead to significant price increases. It also marks a considerable victory for major tech companies that have made substantial financial commitments to the Trump administration in recent months. Trump’s tariffs have previously disrupted global markets, causing a sell-off in stocks and escalating trade tensions with China.
This move signals the first notable easing of tensions between the Trump administration and China. Additionally, the exemptions are retroactive to April 5.
The exemptions are estimated to apply to nearly $390 billion in US imports, including over $101 billion from China, according to statistics compiled by Gerard DiPippo, associate director at the Rand China Research Center.
Smartphones represent the largest category impacted, with US imports from China valued at over $41 billion in 2024, accounting for roughly nine percent of total imports from the country. Computers and similar devices also fall under the exemptions, with over $36 billion imported from China in the same year.
Altogether, these exemptions encompass consumer electronics and semiconductors that make up about 22 percent of US imports from China, according to DiPippo.
“This is a significant gap in the US tariff framework that will shield major firms like Apple and consumers of laptops and smartphones from potential price hikes,” he stated. “However, many other goods from China remain subject to high US tariffs. This exemption only affects a specific segment of the economy.”
On Saturday, Trump refrained from providing further details on the exemptions but indicated that more information would be available on Monday. “I’ll provide that answer on Monday. We’ll be very specific,” he told reporters aboard Air Force One. “As a country, we’re bringing in a lot of money.”
The White House also issued a corresponding memo indicating that these exemptions extend to changes in small-parcel shipping duties. Trump had previously aimed to remove the “de minimis” exemption, which generally applies to parcels valued at $800 or below.
“President Trump has made it clear that America cannot depend on China for manufacturing essential technologies such as semiconductors, chips, smartphones, and laptops,” White House Press Secretary Karoline Leavitt remarked in a statement. She shared that the president has secured substantial US investments from leading tech companies, emphasizing their efforts to relocate manufacturing to the US.
The reprieve from tariffs may not last long. The exemptions originate from an initial order designed to prevent the stacking of additional tariffs on certain sectors atop the overall rates. This development may indicate that these products could soon face alternative tariffs, although they are likely to be at reduced rates for Chinese imports.
Importantly, products exempt from the new tariffs include machinery used in semiconductor manufacturing, a crucial factor for Taiwan Semiconductor Manufacturing Co. (TSMC) as it embarks on significant US investments along with other chipmakers.
“All products correctly classified under these provisions will be free from the reciprocal tariffs,” the notice stated.
This update appears to exempt these devices from the 10 percent global baseline tariff that applies to other countries, including South Korea, home to Samsung Electronics.
However, the tariff reprieve does not apply to a separate 20 percent tariff on China aimed at pressuring Beijing to combat fentanyl trafficking, nor does it affect other existing levies predating Trump’s current term.
“The US technology sector has a powerful presence, and despite initial opposition within the White House to these exemptions, the situation was ultimately recognized in Washington,” stated Wedbush Securities analyst Daniel Ives in a research note. “Yet, there remains considerable uncertainty and volatility concerning these ongoing negotiations with China.”
The original list of tariff exemptions did include some semiconductor products, specifically central processing units (CPUs). However, it did not extend to crucial tech products required for AI development, such as graphics processing units (GPUs) and their server infrastructure, primarily manufactured in Taiwan and Mexico.
The recent announcement would encompass both Taiwanese and Mexican production, offering noteworthy relief to those aiming to strengthen AI infrastructure in the US.
Semiconductor Equipment Exemptions
Also notable are the new exemptions on semiconductor manufacturing equipment produced by companies like ASML Holding NV and Tokyo Electron Ltd. These tools are vital for constructing chip manufacturing facilities, which carry substantial financial implications. Firms such as TSMC, Samsung, and Intel Corp. are currently planning new US facilities with backing from the 2022 Chips and Science Act.
Trump’s earlier tariff announcement included exemptions for semiconductors and related industries, although he has yet to impose specific tariffs on these categories. The recent exclusions relate to that earlier exemption.
The move shields most of Apple’s core products from the escalating tariffs on China, including iPhones, iPads, and Apple Watches. Apple’s stock has declined since the announcement of the tariffs, with discussions intensifying in recent days following Trump’s increase of tariffs on China, which put companies like Apple at a disadvantage compared to less affected competitors like Samsung. Industry lobbyists have argued against the feasibility of reshoring the final assembly of smartphones and similar products.
Nevertheless, this decision may lay the groundwork for new targeted tariffs likely to affect the technology sector.
The administration is poised to initiate a fresh investigation into semiconductor imports, which could eventually lead to tariffs on chips in the near future. Similar to previous tariffs on steel and aluminum, these duties may encompass both semiconductors and the essential components included.
Trump’s sectoral tariffs currently stand at 25 percent, though it remains unclear what rates will be applied to semiconductors and related products, as well as the extent of their application.
Representatives from Nvidia and ASML did not provide comments. Spokespersons for Tokyo Electron were also unavailable for immediate commentary. The US International Trade Commission refrained from commenting on the exemptions, while the US Trade Representative and the Department of Commerce did not respond to requests for information.
© 2025 Bloomberg LP
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
