On April 11, the U.S. Customs and Border Protection (CBP) announced that smartphones and computers would not be included in U.S. President Donald Trump’s newly proposed 125% reciprocal tariffs on goods imported from China. This decision has alleviated concerns about potential sharp increases in technology product prices.
This ruling was welcomed by both customers and businesses, notably large corporations such as South Korea’s Samsung Electronics, Apple, and TSMC. Previously, there were worries that the cost of iPhones might nearly triple since approximately ninety percent of their manufacturing occurs in China. According to US media reports, this exception provided “significant respite” to shoppers anticipating significant rate increases. Bloomberg highlighted how this action would be advantageous for key technology enterprises like Samsung.
Later that same day, CBP released additional guidelines stating that routers, specific laptops and desktops, smartphones, hard drives, memory chips, and semiconductor manufacturing equipment would be excluded from the new duties implemented on April 10. Consequently, corporations such as Apple, Dell, and HP—majorly dependent on production in China—are anticipated to maintain their activities uninterrupted. Additionally, Samsung, known for producing parts including memory chips within China, stands to benefit from this adjustment.
It is still uncertain if this exemption also covers the previously established 20% tariffs on chemicals used for fentanyl production from China, which were introduced earlier under President Trump’s administration.
Financial Times
highlighted persisting doubts, whereas the White House and the U.S. International Trade Commission chose not to comment.
After the introduction of new tariffs, Apple allegedly leased private jets to swiftly transport crucial items from China and India to the United States in order to bypass potential hold-ups. On April 11, as he traveled to Florida on Air Force One, Trump stated, “I’ve always had good relations with President Xi,” and showed hope for upcoming talks with China, noting, “We will see something positive happening.”
The U.S. Trade Representative, Jamie Greer, informed Fox News that China’s counter-tariffs were “neither unexpected nor welcome.” Furthermore, he commented, “I believe the Chinese approach things pragmatically; they grasp concepts of influence and geopolitical maneuvering internationally… which allows us to make progress.”
Nevertheless, the Trump administration indicated a firm position towards decreasing dependence on China regarding crucial technologies. In an announcement made by White House spokesperson Karoline Leavitt on April 12th, she stated that the US should not depend solely on China for essential technological components such as semiconductors, smartphones, and laptops. She also mentioned that outcomes from an inquiry conducted pursuant to Section 232 of the Trade Expansion Act were imminent. This section empowers the President of the United States to enforce urgent trading actions when particular imports pose risks to national security. Previously, through this same clause, Trump imposed duties on goods including steel, aluminum, and vehicles, suggesting potential analogous steps concerning semiconductors.
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