The Trump administration has begun conceding after announcing the exclusion of smartphones, computers, and other electronics from the recent round of tariffs on Chinese imports, providing relief to major tech companies and potentially preventing steep price increases for consumers.
According to guidance published late Friday by U.S. Customs and Border Protection, devices including smartphones, laptops, hard drives, computer processors, memory chips, and semiconductor manufacturing equipment will be exempt from the 125% additional tariff Trump placed on Chinese goods and the 10% global tariff imposed on most other countries.
This exemption is a retreat from the administration’s aggressive trade stance announced on what President Trump called “liberation day” on April 2. The carveout applies universally, meaning these tech products will avoid both the China-specific and global tariffs regardless of where they’re manufactured.
The tech industry had been bracing for major disruption. Apple reportedly airlifted 1.5 million iPhones from India to the United States to avoid the tariffs, while companies like Sony, ASUS, and Nvidia had already begun raising prices on various electronics.
Wall Street analysts predicted that the full tariffs could push iPhone prices from $1,000 to more than $1,600.
The exemption doesn’t provide complete relief, however. These products remain subject to a 20% duty previously imposed on Chinese goods related to fentanyl concerns, as well as other pre-existing tariffs.
Additionally, video game consoles appear to have been excluded from the exemption list, leaving uncertainty around upcoming releases like the Nintendo Switch 2.
This move follows a tumultuous week for markets, which plunged after Trump’s initial announcement before recovering slightly when he declared a “90-day pause” on higher tariff rates for most countries—while simultaneously increasing the total rate for Chinese imports to 145%. China responded by raising its tariffs on American goods to 125%.
The back-and-forth has raised questions about the Trump administration’s trade strategy.
Earlier in the week, White House Press Secretary Karoline Leavitt suggested that the United States has the workforce and resources to manufacture iPhones domestically—a claim experts dispute, noting such devices could cost as much as $3,500 and would require years to develop the necessary manufacturing infrastructure.
Apple CEO Tim Cook has maintained that China’s manufacturing advantage stems from its vast pool of skilled workers, once remarking, “In the U.S., you could have a meeting of tooling engineers, and I’m not sure we could fill the room. In China, you could fill multiple football fields.”
Industry observers note that the exemption may only be temporary. The Trump administration is reportedly preparing another national security-related trade investigation into semiconductors, which could result in additional tariffs in the coming months.
These could still affect electronics since many semiconductors are imported inside finished devices.
