In a major win for U.S. tech giants, President Donald Trump has excluded smartphones, computers, and other electronics from the latest round of sweeping tariffs on Chinese imports. The move, which eases pressure on companies like Apple, Nvidia, and Dell, comes amid rising fears of a global trade war.
The U.S. Customs and Border Protection quietly released a notice to shippers, listing 20 product categories now exempt from the import duties. Effective retroactively from 12:01 a.m. EDT on April 5, the exclusions cover:
- All computers and laptops
- Disk drives and data processing units (under tariff code 8471)
- Semiconductor devices and memory chips
- Flat panel displays
No explanation was provided in the notice, but the timing signals strategic relief for firms bracing for a major supply chain hit. Electronics were among the top imports from China in 2024, with smartphones alone totaling $41.7 billion, followed by laptops at $33.1 billion, according to U.S. Census Bureau data.
Relief for Tech Titans
“This is the most bullish news we could have hoped for heading into the week,” said Dan Ives, analyst at Wedbush Securities. “With ongoing uncertainty around the China negotiations, this gives companies like Apple and Microsoft some breathing room.”
In fact, many tech CEOs have embraced Trump’s leadership in his second term. Apple CEO Tim Cook hosted a pre-inaugural event and has maintained close contact with the White House. Cook’s efforts to diversify Apple’s supply chain — including ramping up iPhone production in India — seem to be paying off, with recent reports revealing 600 tons of iPhones flown into the U.S. from India to avoid tariff hikes.
Read Also: Trump Under Pressure as China Declares Tariff War With 125% Hike on U.S.
Tariff Balancing Act
While the exemptions apply only to Trump’s reciprocal tariffs (which just surged to 125%), his 20% blanket tariff on all Chinese imports connected to the U.S. fentanyl crisis remains in place. Trump hinted at more changes ahead, telling reporters aboard Air Force One:
“We’re taking in a lot of money. I’ll be specific on Monday.”
Still, another round of tariffs might be on the way — a new national security trade investigation into semiconductors is expected to begin soon, possibly introducing fresh duties.
White House spokeswoman Karoline Leavitt confirmed that under Trump’s direction, companies like Apple, Nvidia, and Taiwan Semiconductor are rushing to onshore manufacturing and reduce dependency on China.
Inflation, Politics & Trade
These exclusions reflect a growing awareness within Trump’s circle about how tariffs could fuel inflation and hurt consumers. Analysts say a top-tier iPhone could’ve jumped from $1,599 to $2,300 if the 125% tariff had applied.
Yet, Trump has consistently argued that the tariffs are necessary pain for long-term gains. He believes the current trade imbalance favors China and wants to “realign the global trading order.”
The move comes as part of Trump’s broader strategy — last week, he delayed increased tariffs on 57 trading partners and the European Union, leaving them with a flat 10% rate while negotiations continue.
While some Republicans worry about political fallout in the 2026 midterms, Trump remains confident.
“I have a good relationship with President Xi,” he said. “Something good will come out of this.”
Markets React
Despite the drama, U.S. markets ended the week on a high note, though safe-haven gold hit a record high, and 10-year bond yields posted their largest weekly gain since 2001. The dollar weakened, a sign that investor confidence in the U.S. outlook remains shaky.
Meanwhile, China hit back with its own retaliatory 125% tariffs on U.S. imports, pushing tensions to new highs and signaling that the trade battle between the world’s two largest economies is far from over.
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