Phones, other electronics exempt from new tariffs

Experts said on Saturday that the Trump administration's decision to exempt smartphones, computers, and other electronics from what the White House calls "reciprocal" tariffs will spare U.S. technology companies like Apple from the steep increases imposed on China. Every weekend, receive a curated selection of ten of our best stories in your email. The United States directive Customs and Border Protection, identifies nearly two dozen exemptions, including chips, flash drives and TV displays. Since April 5, the exempted products have been exempt from duties, as directed by President Donald Trump. China's State Council issued a warning on Friday that it will "fight to the end" in response to Trump's escalating trade war, and the announcement comes after Beijing increased tariffs on U.S. goods by 135 percent. The exemptions also come days after U.S. "The president has been clear with me and with others that he does not intend to have exclusions and exemptions," Trade Representative Jamieson Greer told senators. Karoline Leavitt, the White House press secretary, stated in response to questions on Saturday that the United States cannot rely on China to manufacture essential technologies.

Smartphones, computers, and other electronic devices have been exempted from "reciprocal" tariffs imposed by US President Donald Trump's administration, including the 125 percent tariffs imposed on Chinese imports. The goods would not be subject to Trump's 10% global tariff on most countries and the much larger Chinese import tax, according to a notice from US Customs and Border Protection. One trade analyst called it a "game-changer scenario" because it marks the first significant reprieve from Trump's tariffs on China. Late on Saturday, while travelling to Miami, Trump said he would give more details of the exemptions at the start of next week.

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Smartphones, computers, and other electronic devices receive tariff exemptions from Trump. A long list of electronic products got a reprieve for now from at least some of the levies on China, which had been expected to take a toll on tech giants like Apple.

From an angle, a large glass entrance to a store with a floating Apple logo inside. Some Americans rushed to Apple stores to purchase new phones in anticipation of higher iPhone prices.

The Trump administration issued a rule late Friday that spared smartphones, computers, semiconductors, and other electronics from some of the fees. This was a significant break for tech companies like Apple and Dell and the prices of iPhones and other consumer electronics. It came after more than a week of increasing tariffs on products imported from China. A message posted late Friday by U.S. Customs and Border Protection included a long list of products that would not face the reciprocal tariffs President Trump imposed in recent days on Chinese goods as part of a worsening trade war. Modems, routers, flash drives, and other technology products that are largely not manufactured in the United States would also be excluded. The exemptions do not provide complete relief. Smartphones and electronics will continue to be subject to additional tariffs. In the beginning of this year, the Trump administration imposed a tariff of 20% on Chinese goods for what it claimed was the country's role in the fentanyl trade. And the administration could still end up increasing tariffs for semiconductors, a vital component of smartphones and other electronics.

The first significant exemptions for Chinese goods, which would have far-reaching effects on the U.S. economy if they were to continue, were made by these actions. Tech giants such as Apple and Nvidia would largely sidestep punitive taxes that could slash their profits. The potential for significant price increases on smartphones, computers, and other gadgets would be avoided by consumers, some of whom rushed to purchase iPhones this past week. Additionally, the exemptions may alleviate the chaos that many economists feared might result in a recession and prevent further inflation.

Mr.'s most recent change was the tariff relief. Trump's attempt to reform global trade in an effort to boost manufacturing in the United States. The factories that produce laptops, iPhones, and other electronic goods are deeply rooted in Asia, particularly in China, and it is unlikely that they will move without a motivating factor like the high taxes that the Trump administration had proposed. Matthew Slaughter, the dean of Dartmouth's Tuck School of Business, stated, "It's difficult to know if there's a realization within the administration that reworking the American economy is a gargantuan effort." The exemptions for electronics are applicable to all nations, not just China. Still, any relief for the electronics industry may be short-lived, since the Trump administration is preparing another national security-related trade investigation into semiconductors. A person with knowledge of the situation stated that this will also apply to some downstream products, such as electronics, as many semiconductors enter the United States through other devices. Additional tariffs have previously been imposed as a result of these investigations. Keeping an Eye on Trump's First 100 Days Previous actions taken by the Trump administration regarding China and tariffs April 8

stated that China's retaliation for President Trump's tariffs was a "big mistake" April 7

threatened to impose substantial tariffs on China as a result of Beijing's retaliation March 9

Refused to rule out the possibility of a recession this year Feb. 7

Temporarily walked back the suspension of de minimis, a type of duty-free treatment ›

Feb. 5

Reversed decision to halt deliveries from China and Hong Kong ›

Previous posts about tariffs and China See every major action by the Trump administration ›

Karoline Leavitt, the White House spokeswoman, said in a statement on Saturday that Mr. Trump was still committed to seeing more of these products and components made domestically. “President Trump has made it clear America cannot rely on China to manufacture critical technologies” and that at his direction, tech companies “are hustling to onshore their manufacturing in the United States as soon as possible,” she said.