In a significant policy shift, the Trump administration has excluded smartphones, computers, and other key tech products from sweeping new U.S. tariffs, easing concerns that electronic goods could see dramatic price hikes.
The U.S. Customs and Border Protection agency issued a notice late Friday confirming that smartphones, laptops, semiconductors, solar cells, and memory cards will be exempt from the 10% global tariff imposed on most countries, as well as the steep 125% tariffs applied specifically to Chinese imports.
The decision follows growing alarm from major U.S. tech companies, particularly Apple, that higher import taxes could lead to skyrocketing consumer prices. Some estimates warned that iPhone prices could triple if the full impact of the tariffs were passed on to customers.
Apple, which dominates the U.S. smartphone market, relies heavily on manufacturing in China. According to Counterpoint Research, around 80% of iPhones sold in the U.S. are made in China, with the remaining 20% produced in India. Apple and other tech giants like Samsung have been working to diversify their supply chains in recent years, with India and Vietnam emerging as alternative manufacturing hubs.
As the tariffs loomed, Apple reportedly accelerated production in India to reduce its exposure to rising trade tensions between the U.S. and China.
President Trump had announced sweeping new tariffs to take effect this week, targeting countries around the globe. However, on Wednesday, he reversed course, unveiling a 90-day pause on tariff hikes for most nations — excluding China. The move was described by the White House as a negotiation tactic aimed at securing more favorable trade terms.
China, which responded with an 84% tariff on U.S. goods, remains a key target of Trump’s trade strategy. In response to Beijing’s retaliation, the Trump administration raised tariffs on Chinese imports to 145%.
Trump has long argued that his tariff policies are intended to address what he views as unfair trade practices, encourage domestic manufacturing, and bring jobs back to American soil. “This is about leveling the playing field and making sure American companies are not being taken advantage of,” Trump said in recent remarks.
The exemptions come as a relief to both tech companies and consumers, many of whom feared dramatic price increases on essential devices like smartphones and laptops. Industry analysts suggest the move will help stabilize supply chains and provide companies with more time to adapt to shifting trade dynamics.
The administration has signaled that further negotiations are ongoing, with the current tariff reprieve set to expire in July.
