The administration of U.S. President Donald Trump has granted exemptions from harsh reciprocal tariffs on smartphones, computers, and some other electronics that are heavily imported from China—offering major relief to tech giants like Apple, which rely on such imports.
In a notice to shipping companies, the U.S. Customs and Border Protection agency published a list of tariff codes exempted from import taxes, retroactively effective as of 12:01 a.m. ET (04:01 GMT) on April 5.
The notice includes 20 product categories, notably the broad tariff code 8471 covering computers, laptops, hard drives, and automatic data processing machines. It also includes semiconductors, equipment, memory chips, and flat-panel displays.
No explanation was given for this step, but the late-stage exemption brings welcomed relief to major tech firms like Apple (AAPL.O), Dell Technologies (DELL.N), and many other importers.
Trump’s action also exempts these electronics from his basic 10% tariff on goods from most non-China countries, easing import costs on semiconductors from Taiwan and iPhones manufactured in India.
When asked on Saturday about the reasons for the exemptions and his plans regarding semiconductors, Trump told reporters aboard Air Force One:
"I'll give you the answer on Monday. We'll be very specific on Monday… We're making a lot of money as a country, we're making a lot of money."
Dan Ives, an analyst at Wedbush Securities, called the announcement:
"The most optimistic news we could have heard this week."
In an industry memo, he wrote:
"There’s still uncertainty and visible volatility in these negotiations with China… Major tech companies like Apple, Nvidia, and Microsoft, along with the broader tech sector, can breathe a sigh of relief this week—at least until Monday."
Tech Leaders Rally Around Trump
Many CEOs from tech firms have embraced Trump as he began his second term. They attended his inauguration on January 20 in Washington and later celebrated with him. Apple CEO Tim Cook hosted a pre-inauguration event and visited Trump at his Florida residence.
Regarding Chinese imports, the exemption only applies to Trump’s reciprocal tariffs, which rose to 125% this week, according to a White House official. Trump’s earlier 20% tariffs on all Chinese imports—linked to the U.S. fentanyl crisis—remain in effect.
The same official stated that Trump will soon launch a new national security trade investigation into semiconductors, which could lead to additional tariffs.
White House spokesperson Karoline Leavitt said in a statement:
“President Trump has made it clear that the U.S. cannot rely on China to manufacture vital technologies like semiconductors, chips, smartphones, and laptops.”
She added that, under Trump’s direction, tech giants like Apple, Nvidia (NVDA.O), and Taiwan Semiconductor (2330.TW) are rushing to localize their production in the U.S. as quickly as possible.
The Tariff Pain
These exemptions reflect a growing realization within the Trump administration about the burden tariffs place on consumers already suffering from high prices.
Even at a lower 54% rate on Chinese imports, analysts predicted the price of a premium iPhone could rise to $2,300 from $1,599. At 125%, economists warned that U.S.–China trade might grind to a halt.
Smartphones were America's top import from China in 2024, totaling $41.7 billion, followed by laptops at $33.1 billion, according to U.S. Census Bureau data.
Reuters reported on Friday that Apple recently chartered cargo flights to ship 600 tons of iPhones—up to 1.5 million units—from India to the U.S. as it ramped up production there to avoid Trump’s tariffs.
Economic and Political Context
Trump’s 2024 re-election campaign heavily focused on reducing prices, a key issue given inflation’s damage to President Biden and the Democratic Party’s economic reputation.
At the same time, Trump pledged to enforce tariffs, a cornerstone of his economic agenda. He dismissed financial market volatility and higher prices from these tariffs as necessary disruptions to reshape global trade on U.S. terms.
However, the so-called reciprocal tariffs have raised fears of a U.S. recession and drawn criticism from Republicans concerned about losing control of Congress in the upcoming midterm elections—an opportunity Democrats could exploit by attacking Trump’s economic policies.
Last week, Trump delayed raising tariffs on 57 trade partners and the European Union, maintaining the 10% rate for most nations while they negotiate trade deals with Washington.
🇨🇳 A Tense Trade Relationship
While spending the weekend at his Florida residence, Trump told reporters Friday that he is comfortable with the higher tariffs on China but still maintains a good relationship with Chinese President Xi Jinping, believing that something positive could emerge from their ongoing trade dispute.
Markets saw fresh turmoil on Friday as China retaliated by matching Trump's new tariff hikes, also raising its duties to 125%, further escalating the trade war and threatening to unravel global supply chains.
U.S. stocks ended a volatile week on a high note, but gold prices hit a record, 10-year U.S. Treasury yields saw their biggest weekly gain since 2001, and the U.S. dollar weakened sharply, signaling deep investor anxiety about the American economy.
— Reuters
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The administration of U.S. President Donald Trump has granted exemptions from harsh reciprocal tariffs on smartphones, computers, and some other electronics that are heavily imported from China—offering major relief to tech giants like Apple, which rely on such imports.
In a notice to shipping companies, the U.S. Customs and Border Protection agency published a list of tariff codes exempted from import taxes, retroactively effective as of 12:01 a.m. ET (04:01 GMT) on April 5.
The notice includes 20 product categories, notably the broad tariff code 8471 covering computers, laptops, hard drives, and automatic data processing machines. It also includes semiconductors, equipment, memory chips, and flat-panel displays.
No explanation was given for this step, but the late-stage exemption brings welcomed relief to major tech firms like Apple (AAPL.O), Dell Technologies (DELL.N), and many other importers.
Trump’s action also exempts these electronics from his basic 10% tariff on goods from most non-China countries, easing import costs on semiconductors from Taiwan and iPhones manufactured in India.
When asked on Saturday about the reasons for the exemptions and his plans regarding semiconductors, Trump told reporters aboard Air Force One:
"I'll give you the answer on Monday. We'll be very specific on Monday… We're making a lot of money as a country, we're making a lot of money."
Dan Ives, an analyst at Wedbush Securities, called the announcement:
"The most optimistic news we could have heard this week."
In an industry memo, he wrote:
"There’s still uncertainty and visible volatility in these negotiations with China… Major tech companies like Apple, Nvidia, and Microsoft, along with the broader tech sector, can breathe a sigh of relief this week—at least until Monday."
Tech Leaders Rally Around Trump
Many CEOs from tech firms have embraced Trump as he began his second term. They attended his inauguration on January 20 in Washington and later celebrated with him. Apple CEO Tim Cook hosted a pre-inauguration event and visited Trump at his Florida residence.
Regarding Chinese imports, the exemption only applies to Trump’s reciprocal tariffs, which rose to 125% this week, according to a White House official. Trump’s earlier 20% tariffs on all Chinese imports—linked to the U.S. fentanyl crisis—remain in effect.
The same official stated that Trump will soon launch a new national security trade investigation into semiconductors, which could lead to additional tariffs.
White House spokesperson Karoline Leavitt said in a statement:
“President Trump has made it clear that the U.S. cannot rely on China to manufacture vital technologies like semiconductors, chips, smartphones, and laptops.”
She added that, under Trump’s direction, tech giants like Apple, Nvidia (NVDA.O), and Taiwan Semiconductor (2330.TW) are rushing to localize their production in the U.S. as quickly as possible.
The Tariff Pain
These exemptions reflect a growing realization within the Trump administration about the burden tariffs place on consumers already suffering from high prices.
Even at a lower 54% rate on Chinese imports, analysts predicted the price of a premium iPhone could rise to $2,300 from $1,599. At 125%, economists warned that U.S.–China trade might grind to a halt.
Smartphones were America's top import from China in 2024, totaling $41.7 billion, followed by laptops at $33.1 billion, according to U.S. Census Bureau data.
Reuters reported on Friday that Apple recently chartered cargo flights to ship 600 tons of iPhones—up to 1.5 million units—from India to the U.S. as it ramped up production there to avoid Trump’s tariffs.
Economic and Political Context
Trump’s 2024 re-election campaign heavily focused on reducing prices, a key issue given inflation’s damage to President Biden and the Democratic Party’s economic reputation.
At the same time, Trump pledged to enforce tariffs, a cornerstone of his economic agenda. He dismissed financial market volatility and higher prices from these tariffs as necessary disruptions to reshape global trade on U.S. terms.
However, the so-called reciprocal tariffs have raised fears of a U.S. recession and drawn criticism from Republicans concerned about losing control of Congress in the upcoming midterm elections—an opportunity Democrats could exploit by attacking Trump’s economic policies.
Last week, Trump delayed raising tariffs on 57 trade partners and the European Union, maintaining the 10% rate for most nations while they negotiate trade deals with Washington.
🇨🇳 A Tense Trade Relationship
While spending the weekend at his Florida residence, Trump told reporters Friday that he is comfortable with the higher tariffs on China but still maintains a good relationship with Chinese President Xi Jinping, believing that something positive could emerge from their ongoing trade dispute.
Markets saw fresh turmoil on Friday as China retaliated by matching Trump's new tariff hikes, also raising its duties to 125%, further escalating the trade war and threatening to unravel global supply chains.
U.S. stocks ended a volatile week on a high note, but gold prices hit a record, 10-year U.S. Treasury yields saw their biggest weekly gain since 2001, and the U.S. dollar weakened sharply, signaling deep investor anxiety about the American economy.
— Reuters
