Trump exempts electronics devices from latest tariff

Electronics parts will be exempt from the Trump reciprocal tariff, according to a US Customs and Border Protection notice posted late Friday. Smartphones, computer monitors and various electric parts are among the exempted products.

The exemption, which comes after the Trump administration on Wednesday imposed a minimum tariff rate of 145% on Chinese goods imported to the United States, does not include the 20% tariff on Chinese goods for the country’s role in the fentanyl trade.

The tariff exemption would have a major impact on tech giants like Apple which has most of its Apple iPhone production and assembly based in China, according to Wedbush Securities’ estimates.

The White House on Saturday said that Trump will continue to urge tech companies to move production to the United States.

“President Trump has made it clear America cannot rely on China to manufacture critical technologies such as semiconductors, chips, smartphones, and laptops. That’s why the President has secured trillions of dollars in U.S. investments from the largest tech companies in the world, including Apple, (Taiwan Semiconductor Manufacturing Company), and Nvidia. At the direction of the President, these companies are hustling to onshore their manufacturing in the United States as soon as possible,” White House press secretary Karoline Leavitt said in a statement.

Effect of Trump electronics tariff before excemption

With the fluctuations in tariffs, economists have warned that it may ultimately be passed on to the consumer. The fear has sent many Americans rushing to buy big-ticket items, such as cars and electronics, as consumer sentiment has dropped to record lows.

Counterpoint Research, a firm that monitors global smartphone shipments, estimated that Apple has up to six weeks of inventory in the United States and once that supply runs out, prices would have been expected to go up.

Recall that Nintendo also said on April 4 that it would postpone the US preorder date of its Switch 2 gaming console to “assess the potential impact of tariffs and evolving market conditions.” The Switch 2 initially priced at $450 could instead cost around $600 as a result of tariffs, according to experts.

The Trump administration says these tariffs would bring more manufacturing jobs to the United States and reverse a decades-long decline. But some products like semiconductors and microchips heavily outsourced to factories in Asia due to lower costs can’t be easily made or found in the United States, thus increasing the costs to produce them in American factories. With those electronic parts now exempted, according to the Friday notice, it could help Asian chipmakers, such as Taiwan Semiconductor Manufacturing Company (TSMC), South Korea’s Samsung and SK Hynix.

“The president has stated that autos, steel, pharmaceuticals, chips and other specific materials will be included in specific tariffs to ensure tariffs are applied fairly and effectively,” a White House official said.

The official said Trump would soon order a study on the national security effects on semiconductor imports — known as a Section 232 study.