Washington, D.C. – The Trump administration has decided to exempt smartphones and computers from reciprocal tariffs, specifically the 125% levies imposed on Chinese imports. This decision was made in response to concerns raised by US tech companies about potential price hikes on electronic devices, many of which are manufactured in China.
US Customs and Border Patrol announced late Friday that smartphones and computers would be excluded from Trump’s 10% global tariff on most countries, including the larger Chinese import tax. This exemption also applies to other electronic devices and components such as semiconductors, solar cells, and memory cards.
If the tariffs had been passed on to consumers, estimates indicated that iPhone prices and other electronic goods in the US could have tripled. With Apple accounting for over half of smartphone sales in the US last year, the impact would have been significant. The majority of Apple’s iPhones sold in the US are made in China, with only a small percentage manufactured in India.
In an effort to diversify their supply chains and reduce reliance on China, companies like Apple and Samsung have been exploring alternative manufacturing hubs in countries like India and Vietnam. Apple reportedly ramped up production of India-produced devices in response to the tariffs taking effect.
Trump had initially planned to implement steep tariffs on countries worldwide, but later announced a 90-day pause on countries facing higher US tariffs (excluding China), whose tariffs were increased to 145%. This decision was made in light of China’s retaliatory tariffs on US goods.
The administration views these import taxes as a strategy to address unfairness in the global trading system and bolster American job growth and domestic manufacturing. The move to exempt smartphones and computers from reciprocal tariffs reflects the administration’s efforts to balance economic interests with trade negotiations. The evolving trade policies under President Trump’s administration continue to shape the global economic landscape.
