6 days Ago By Joseph Waring
A surprise US government decision to exempt smartphones, computers and a range of other products from reciprocal tariffs brought temporary relief to global suppliers, but analysts believe the switch underlines the elevated uncertainty facing global supply chains.TF International Securities analyst Ming-Chi Kuo wrote in a post yesterday (13 April) the US government’s unpredictable tariff policy “poses the greatest short-term uncertainty for iPhone supply”.He added although the move reduces tariffs in China from 145 per cent to 20 per cent, the pressure on Apple remains significant.
Assembly lines in China for iPhones to be shipped to the US remain halted, Kuo started, which implies Apple plans to make all units for its domestic market exclusively in India starting this year.Counterpoint Research senior analyst Ivan Lam told Mobile World Live with suppliers facing tariff challenges and increasing uncertainty, they will speed ongoing moves to shift assembly out of China and find alternative suppliers.He noted Samsung already moved much of its smartphone and tablet production to Vietnam and India, but expects its diversification efforts to accelerate.
Lam cautioned China’s chip sector is yet to be targeting and there could be more drama in the area in the future. For now, he said the exemption covers major products such as consumer electronics brought into the US, giving suppliers in China some breathing room.In addition to smartphones and laptops, hard drives, processors and memory chips, flatscreen displays and chipmaking equipment are excluded from the 125 per cent China tariff and baseline 10 per cent global tariff on more other countries.
Reuters reported last week some 1.5 million iPhones were shipped out of India as Apple sought to avoid tariffs and boost inventory in the US, its biggest market.The post Analysts welcome US phone tariff exemptions appeared first on Mobile World Live.
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