President Donald Trump’s administration has excluded smartphones, laptops, and other key electronic products from its sweeping reciprocal tariff measures in a move poised to benefit global electronics manufacturers and consumers alike.
According to a Bloomberg report, the exemptions, quietly published by U.S. Customs and Border Protection late Friday, remove several high-demand tech products from Trump’s 125% China-specific tariff and the 10% global baseline levy.
The exclusion list includes smartphones, laptop computers, hard drives, computer processors, and memory chips—items that are rarely manufactured in the United States and would require years of investment to localize production.
Reprieve for Apple, Samsung, others
By sparing these products, the administration effectively shields major electronics players such as Apple Inc. and Samsung Electronics Co. from immediate cost surges, while also mitigating potential price hikes for end consumers.
Additionally, machines used in semiconductor manufacturing were exempted. This is a significant development for companies like Taiwan Semiconductor Manufacturing Co. (TSMC), which has announced large-scale investment plans in the U.S., as well as for the broader chipmaking sector.
However, the report noted that the relief may be temporary as the exclusions are derived from an earlier executive order designed to prevent cumulative tariff burdens across sectors.
- Analysts suggest that these items could still be subject to new, potentially lower tariffs in the future—especially those targeting Chinese imports.
- One notable category on the exclusion list is semiconductors.
- Trump has previously expressed intentions to impose targeted tariffs on semiconductor products, although such measures have yet to be implemented.
- To date, sector-specific tariffs under his trade policy have been capped at 25%, but the eventual rate for semiconductors remains uncertain.
What you should know
In the wake of the tariff wars leading to the imposition of 125% duty on goods from China, industry analysts had warned that this could have dire consequences on the prices of several electronic devices being manufactured in China.
Specifically, Global Head of Technology Research at Wedbush Securities, Dan Ives, had warned that tariffs could have a far-reaching impact on tech consumers and multinational companies like Apple, with iPhone prices expected to increase three times.
- According to him, the idea of Apple shifting its entire supply chain to the U.S. is economically impractical.
- In a CNN interview, Ives warned that an iPhone assembled entirely in the United States could retail for as much as $3,500, compared to the current price of around $1,000.
- This is because approximately 90% of iPhones are assembled in China, with key components like processors and displays sourced from Taiwan and South Korea.
- Apple, which has long relied on Asian manufacturing hubs, is seen as one of the most exposed companies in the U.S.-China trade war.
