US President Donald Trump's administration exempted smartphones, computers and other electronics from the reciprocal tariffs, granting a temporary reprieve to global technology giants like Apple and Nvidia.
The exclusions, announced late Friday by US Customs and Border Protection, restrict the scope of the levies by exempting these products from Trump's 125% tax on China and his 10% worldwide levy on nearly all other countries.
The tariff exclusions cover a broad range of popular consumer devices, including cellphones, laptops, hard drives, processors and memory chips, most of which are not produced domestically. Establishing domestic production for these goods would likely take several years.
Machines used in semiconductor manufacturing are also exempt, marking a significant victory for companies like Taiwan Semiconductor Manufacturing Co., which has pledged substantial investments in the United States, as well as other chipmakers.
There has been considerable speculation about the impact of tariffs on the tech industry, which relies heavily on manufacturing in China and other countries. One of President Trump's stated goals is to bring manufacturing back to the United States, though some argue that an American‑made iPhone is unrealistic.
Relief for Apple, Nvidia
Apple and Nvidia are likely to welcome the news, as will US consumers who will avoid a significant price increase on their next iPhone. However, the industry may still face additional targeted tariffs and restrictions. For instance, The New York Times reports that the Trump administration is planning a national security investigation into semiconductors.
According to Gerard DiPippo, associate director of the Rand China Research Center, the exemptions cover approximately $390 billion in US imports, based on official US 2024 trade statistics, with over $101 billion originating from China.
Smartphones represent the largest category of imports from China. In 2024, the United States imported over $41 billion in cell phones from China, comprising approximately 9% of total imports from the country. Computers and similar items are also included, with the US expected to import more than $36 billion in 2024.
Overall, the exemptions encompass consumer electronics and semiconductors, which, according to Gerard DiPippo, will account for about 22% of US imports from China in 2024.
