Smartphones, computers exempted from Trump tariffs – temporarily at least

Smartphones, laptops, semiconductors, solar cells and memory cards granted a reprieve, but for how long?

Donald Trump has announced exemptions for smartphones, computers and key electronic components from the latest round of tariffs, including the duties levied on Chinese imports. At least temporarily.

It marks the first major reprieve for electronics under Trump's hardline and chaotic tariff regime and signals a potential recalibration of the administration's approach to global tech trade.

In a formal notice issued by US Customs and Border Protection (CBP), the administration clarified that the excluded items – effective retroactively to 5^th April – will also be exempt from Trump's global 10% tariff on most foreign goods.

The list includes smartphones, laptops, semiconductors, solar cells and memory cards, all of which had been facing the brunt of the White House's aggressive trade stance.

Analysts at Wedbush Securities hailed the decision on Saturday, calling it "the best news possible for tech investors."

Wedbush viewed the exemption as "a big step forward for US tech," although cautioning that the "broader China tariff war which will take a number of months at least" remains an ongoing challenge.

Trump, speaking to reporters aboard Air Force One late Saturday en route to Miami, said more details on the exemptions would be given early next week.

"We'll be very specific," he said. "But we're taking in a lot of money. As a country, we're taking in a lot of money."

However, there are reports that a technical glitch has meant that no tariffs have been collected at ports.

On Sunday, commerce secretary Howard Lutnick seemingly changed tack, saying that the reprieve on electronics is only temporary and that tariffs would be re-introduced in a few weeks. “We need to have semiconductors, we need to have chips, and we need to have flat panels - we need to have these things made in America. We can't be reliant on Southeast Asia for all of the things that operate for us," he said.

White House deputy chief of staff on policy Stephen Miller clarified that the excluded electronics would still be subject to a separate 20% tariff connected to US policy on Chinese-origin fentanyl, a measure tied to the administration's ongoing crackdown on the opioid crisis.

The flip-flopping comes amid mounting pressure from US technology giants, who warned that the escalating tariffs could result in skyrocketing gadget prices, particularly since many of these products are still manufactured in China.

Industry analysts had predicted that iPhone prices, for instance, could triple had the full weight of the tariffs been passed on to American consumers.

Apple, which dominates the US smartphone market, manufactures more than 80% of its US-bound iPhones in China, with the remainder produced in India. The company has been racing to shift more of its supply chain out of China, a move mirrored by rivals like Samsung.

India and Vietnam have emerged as primary alternatives for manufacturing.

According to the White House, the exemptions are intended to give American companies more time to relocate their production domestically.

"President Trump has made it clear America cannot rely on China to manufacture critical technologies such as semiconductors, chips, smartphones, and laptops," said White House press secretary Karoline Leavitt.

Last week, Trump surprised global markets by announcing a 90-day pause on increased tariffs for all countries, except China, which saw its tariffs surge to 145%. Trump justified the move by citing China's retaliatory stance, including an 84% import levy on American goods.

The White House characterised the pause as a calculated negotiation strategy aimed at securing more favourable trade terms.

At a Republican National Congressional Committee event on Tuesday, Trump criticised the Biden administration's $6.6 billion grant to TSMC for building a plant in Phoenix under the 2022 CHIPS and Science Act.

Trump stated he had offered TSMC no federal money, instead telling the company, "if you don't build your plant here, you're going to pay a big tax – 25, maybe 50, maybe 75, maybe 100%."