The administration of President Donald Trump decided to exempt smartphones, computers, and other essential goods from the new tariffs on imports from China. The exclusion from Trump’s 10% global tax and the 145% China-specific levy was announced in a US Customs and Border Protection notice.
Tech giants concerned about the rising costs of consumer devices made mainly through Chinese manufacturers heavily influenced the decision. According to Wedbush Securities, Apple, a major player in the US smartphone market, produces about 90% of its phones in China.
Industry analysts at Counterpoint Research noted that 80% of iPhones sold in the US are Chinese-made, while 20% are made in India. Trump raised the China tariff to 145% after Beijing imposed an 84% counter-tariff on American goods, escalating the trade war.
Despite earlier plans for steep global tariffs, Trump granted a 90-day pause for most countries, excluding China due to its retaliation. He said only non-retaliating countries would face the lower 10% blanket tariff through July, giving them time for negotiation.
Apple reportedly responded by accelerating production in India, where it had already been working to reduce its reliance on China. Vietnam and India have become key alternatives as smartphone manufacturers shift operations to diversify global supply in China.
According to customs, the exemption covers phones, computers, semiconductors, memory cards, and solar components. Electronics already in US warehouses or entering the country as of April 5 will also qualify for the tariff exemption.
Tech experts warned that without exemption, consumers would likely see sharp price hikes once existing inventory runs out. Counterpoint estimated that Apple holds around six weeks of iPhone inventory in the US, enough to delay the immediate impact.
The White House said the exemption strategy is part of a larger plan to negotiate fairer trade terms with other nations. Trump has defended the tariffs as a tool to fix the trade imbalance and bring manufacturing jobs back to the United States.
