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Trump spares smartphones, computers, other electronics from his 125% China tariffs

Trump spares smartphones, computers, other electronics from his 125% China tariffs

US President Donald Trump attends a cabinet meeting at the White House in Washington, DC, Apr 10, 2025. (File photo: Reuters/Nathan Howard)

WASHINGTON: The US government has granted tariff exclusions for smartphones, computers and other electronics imported largely from China, sparing them from President Donald Trump's steep 125 percent reciprocal duties.

In a notice to shippers, the US Customs and Border Protection agency published a list of tariff codes that will be excluded from the duties. The exclusions are retroactive to 12.01 am ET (12.01 pm, Singapore time) on Apr 5.

The US CBP listed 20 product categories, including the very broad 8471 code for all computers, laptops, disc drives and automatic data processing. It also included semiconductor devices, equipment, memory chips and flat panel displays.

The notice did not provide an explanation for the Trump administration's move, but the late-night exclusion provides welcome relief to major US technology firms, including Apple, Dell Technologies and many other importers.

Trump's action also excludes the specified electronics from his 10 per cent "baseline" tariffs on goods from most countries other than China, easing import costs for semiconductors from Taiwan and Apple iPhones produced in India.

For the Chinese imports, the exclusion only applies to Trump's reciprocal tariffs, which climbed to 125 per cent this week, according to a White House official. Trump's prior 20 per cent duties on all Chinese imports that he said were related to the US fentanyl crisis remain in place.

But the official said Trump will launch a new national security trade investigation into semiconductors soon that could lead to other new tariffs on the sector.

Separately, White House spokesperson Karoline Leavitt said in a statement that Trump has made it clear the US cannot rely on China to manufacture critical technologies such as semiconductors, chips, smartphones, and laptops.

But she said that at Trump's direction, major tech firms, including Apple and chipmakers Nvidia and Taiwan Semiconductor "are hustling to onshore their manufacturing in the United States as soon as possible."

TARIFF PAIN

But the exemptions suggest an increasing awareness within the Trump administration of the pain that his tariffs had in store for inflation-weary consumers, especially on popular products such as smartphones, laptops and other electronics.

Even at a lower 54 percent tariff rate on Chinese imports, analysts predicted that the price of a top-end Apple iPhone could jump to US$2300 from US$1599. At 125 percent, economists and analysts have said that US-China trade could largely halt.

Smartphones were the top US import from China in 2024, totaling US$41.7 billion, while Chinese-built laptop computers were second, at US$33.1 billion, according to US Census Bureau data.

Trump ran to win back the White House last year largely on a promise to bring down prices that, fueled by inflation from the COVID-19 pandemic and Russia's war in Ukraine, had rocketed and tarnished the economic reputation of former President Joe Biden and his Democratic allies.

But Trump also promised as a candidate to impose the tariffs that have become a central part of his economic agenda, and the president has dismissed the turbulence in financial markets and expected price increases arising from the levies as a disturbance that was a necessary part of realigning the global economy and world trading order with his vision.

The iPhone 14, iPhone 14 Pro and iPhone 14 Pro Max are displayed at the Apple Fifth Avenue store on Sep 16, 2022, in New York. (File photo: AP/Yuki Iwamura)

His so-called "reciprocal tariffs," however, raised fears of a US recession and drew criticism from his fellow Republicans, who do not want to lose control of the US House of Representatives and Senate in next year's congressional elections to Democrats, who have sharply attacked Trump's policies.

Trump paused higher duty rates for 57 trading partners and the EU last week, leaving most countries with a 10 percent tariff as they seek to negotiate trade deals with Washington.

Trump, who is spending the weekend at his residence in Florida, told reporters on Friday (Apr 11) he was comfortable with the high tariffs on China but had a good relationship with President Xi Jinping and believed something positive would come out of the trade conflict between them.

But financial markets were in turmoil again on Friday as China matched Trump's latest tariff increase on US imports to 125 percent, raising the stakes in a trade war that threatens to upend global supply chains.

US stocks ended a volatile week higher, but the safe haven of gold hit a record high during the session and benchmark US 10-year government bond yields posted their biggest weekly increase since 2001 alongside a slump in the dollar, signaling a lack of confidence in the US.

Source: Reuters/rj/fs
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