President Donald Trump’s administration has decided to exclude smartphones, computers, and several other electronics from new steep tariffs, offering a major relief to the tech industry.
The U.S. Customs and Border Patrol confirmed the exemptions in a notice released late Friday, stating they apply to both the 10% global tariff and the much higher 125% tariffs on Chinese imports.
This move follows mounting concerns from American tech companies over rising costs, as many of their devices are manufactured in China. It's the first major rollback in Trump’s tariff policy on Chinese goods—one analyst even called it a “game-changer.”
The exemptions, retroactive to April 5, also cover components like semiconductors, memory cards, and solar cells. Dan Ives, head of tech research at Wedbush Securities, said this is “a dream scenario for tech investors,” noting that the exemption of chips and smartphones dramatically changes the outlook for the sector.
Major companies like Apple, Nvidia, and Microsoft are among those breathing a sigh of relief. According to the White House, the decision was made to give companies more time to shift manufacturing back to the U.S.
“President Trump has made it clear America cannot rely on China for critical tech like semiconductors, chips, smartphones, and laptops,” said White House Press Secretary Karoline Leavitt. “Companies are working fast to move their production stateside.”
Trump, speaking from his Florida estate, defended the high tariffs on China and expressed optimism about their long-term impact. However, Deputy Chief of Staff Stephen Miller noted that these electronics are still subject to a separate 20% tariff tied to fentanyl-related concerns.
Analysts warned that iPhone prices could have tripled if the tariffs were fully applied. Apple, which sells more than half of its U.S. smartphones from Chinese production lines, has been accelerating efforts to diversify manufacturing, increasingly relying on facilities in India and Vietnam.
Trump had originally planned to roll out a wave of global tariffs this week, but on Wednesday, he announced a 90-day delay for most countries—except China, whose tariffs were raised to 145%. He cited China’s retaliatory tariffs as the reason.
The White House framed this move as part of a broader negotiation strategy to secure better trade deals. Trump maintains that the tariffs are designed to fix what he sees as unfair trade practices and bring more jobs and factories back to American soil. Photo by Gage Skidmore, Wikimedia commons.