Trump exempts smartphones and computers from new tariffs

The Trump administration has decided to exempt smartphones, computers, and certain other electronic devices from the steep "reciprocal" tariffs, including the 125% duties on Chinese imports.

Late Friday, U.S. Customs and Border Protection issued a notice clarifying that these products would be excluded from both the 10% global tariff affecting most countries and the much higher tariffs on goods from China.

The decision follows strong pushback from U.S. tech companies, who warned that the cost of consumer electronics could surge due to their heavy reliance on Chinese manufacturing.

This marks the first major concession in Trump's tariff campaign against China, with one trade expert calling it a "game-changing scenario."

The exemptions—retroactive to April 5—also cover a broader range of electronics and components, including semiconductors, solar cells, and memory cards.

“This is a dream scenario for tech investors,” said Dan Ives, global head of technology research at Wedbush Securities, in a post on X. “The exclusion of smartphones and chips is a game changer when it comes to China tariffs.”

Major tech firms like Apple, Nvidia, Microsoft, and the wider tech industry are breathing a sigh of relief, he added.

The White House explained the exemptions were intended to give companies more time to shift manufacturing to the U.S.

“President Trump has made it clear that America cannot depend on China for critical technologies like semiconductors, smartphones, and laptops,” said White House Press Secretary Karoline Leavitt. “Under his direction, companies are moving swiftly to bring production back to the U.S.”

While spending the weekend at his Florida estate, Trump told reporters Friday he stood by the tough tariffs on China. “And I think something positive is going to come out of that,” he said, highlighting his ongoing relationship with Chinese President Xi Jinping.

Analysts have warned that U.S. iPhone prices could have tripled if the tariffs were fully passed on to consumers. The U.S. remains a key market for Apple, which accounted for over half of all smartphone sales in the country last year, according to Counterpoint Research.

The firm says around 80% of iPhones sold in the U.S. are manufactured in China, with most of the remainder assembled in India. Apple and other tech giants like Samsung have been working to diversify their supply chains in recent years to reduce dependence on China, with India and Vietnam emerging as alternative production hubs.

Reports suggest Apple has recently accelerated its efforts to ramp up iPhone production in India as the tariffs took effect.

Originally, Trump had planned to roll out sweeping tariffs on numerous countries this week. However, on Wednesday, he announced a 90-day delay for all nations—except China. Chinese tariffs were raised to 145%, a move Trump said was in response to China’s planned 84% counter-tariff on U.S. goods.

In a sharp pivot, Trump said countries that hadn’t retaliated against U.S. tariffs would face a temporary flat tariff of 10% until July. The White House later described the move as a negotiation strategy to secure better trade deals.

Trump has consistently argued that tariffs will correct global trade imbalances and help restore American jobs and manufacturing.

It remains unclear whether Chinese tech imports will still be subject to a separate 20% tariff, which was not part of the “reciprocal” measures announced on April 2. The BBC has reached out to the White House for clarification.