The U.S. will exempt smartphones, computer monitors, and electronic components from President Donald Trump’s latest tariffs, according to a Friday night announcement by U.S. Customs and Border Protection. The exemption applies to goods entering the country or released from warehouses as early as April 5.
This decision comes just days after the administration imposed a 145% minimum tariff on Chinese imports, though a separate 20% tariff targeting China’s role in the fentanyl trade remains in effect. The move provides significant relief for tech giants like Apple, which manufactures nearly 90% of its iPhones in China, according to Wedbush Securities.
Tech Industry Relief
Analysts hailed the exemption as “the best news possible for tech investors.” In a Saturday statement, Wedbush noted companies like Apple, Nvidia, and Microsoft can “breathe a huge sigh of relief,” though broader negotiations in the U.S.-China trade war are expected to continue for months.
Inventory and Pricing Pressures
Counterpoint Research estimates Apple maintains about six weeks of U.S. smartphone inventory. Without the exemption, consumers could have faced price hikes as stocks depleted. The White House reiterated Trump’s push for tech companies to shift production stateside, highlighting recent trillion-dollar commitments from firms like Apple, TSMC, and Nvidia.
Broader Economic Impact
While Trump framed tariffs as protecting U.S. manufacturing, economists warn costs may ultimately reach consumers. This concern has already driven surges in electronics and auto purchases as consumer sentiment hits record lows. Nintendo delayed Switch 2 preorders to assess tariff impacts, with experts predicting a potential $150 price increase.
Semiconductor Exemptions
The policy spares semiconductors and microchips—products heavily reliant on Asian factories like TSMC, Samsung, and SK Hynix. A White House official confirmed upcoming scrutiny of semiconductor imports via a Section 232 national security review. Trump recently criticized Biden’s $6.6 billion TSMC subsidy, vowing to replace incentives with punitive taxes for offshoring.
This exemption seems like a strategic move to avoid tech price spikes right before a major election year. I wonder how long companies like Apple can delay shifting production out of China despite ongoing pressure.