President Trump has exempted smartphones, computers, and other electronics from the 145% tariffs imposed on imports from China earlier this month. The exemptions provide significant relief for tech companies like Apple, which manufactures most of its products in China. White House deputy press secretary Kush Desai stated that the exemptions were made to give companies time to move production to the U.S. “Trump has made it clear America cannot rely on China to manufacture critical technologies such as semiconductors, chips, smartphones, and laptops,” Desai remarked.
“At the direction of the President, these companies are hustling to onshore their manufacturing in the United States as soon as possible.”
According to Evercore ISI, China manufactures 80% of iPads and more than half of Mac computers. Dan Ives, global head of technology research at Wedbush Securities, described the exclusions as a “game-changer scenario” for the tech industry. “Smartphones and chips being excluded is a dream scenario for tech investors,” Ives said.
Trump exempts key tech imports
“The tariffs have been a black cloud over tech since their announcement, and no sector was going to be more hurt than big tech.”
The cost of an iPhone under Trump’s tariff plan could have ballooned to as high as $3,500. Following the initial tariff announcement, Apple lost over $640 billion in market value, and stock markets experienced sharp downturns.
The S&P 500 plunged more than 5% during the period, and the benchmark 10-year Treasury yield saw one of its largest jumps on record, increasing by more than 50 basis points. The items excluded from Trump’s tariffs under the new guidelines are retroactive for products that have left the warehouse by April 5, 2025. This provides financial clarity for U.S. shippers, who are responsible for paying the tariffs upon arrival at U.S. Customs for processing and release.
Tech sector stakeholders and investors can breathe a sigh of relief, as the exemptions mitigate the immediate financial stress caused by the high tariffs. However, the situation remains fluid as the U.S.-China trade dispute continues, with countries weighing their options and engaging in negotiations to avoid potential tariffs on their goods.