5 days Ago By David Richards
Smartphones and computers will be exempt from President Donald Trump’s reciprocal tariffs, but not audio products which is a blow to the premium audio market.ChannelNews understands that Apple HP And Dell have all held discussions with the Trump administration on the impact that the tariffs would have on the CE and B2b markets.The change was revealed with the issuing of updated guidance from U.
S. Customs and Border Protection authority.The clarification comes shortly after Trump slapped a whopping 145% tariff on goods from China a move that would have hurt US hardware CompaniesThe updated tariff guidance excludes notebooks, semiconductors, solar panels, flat-panel TV displays, flash drives, memory cards, and solid-state drives from being charged tariffs.
The exemptions cover consumer electronics and semiconductors that account for about 22% of US imports from China in 2024.The pause will be welcome news to consumers, some of whom rushed to buy new iPhones and other devices amid fears that the tariffs would send prices soaring.It’s also a blow to companies who pre shipped millions of dollars worth of stock in the belief that they would be hit by high tariffs with several major retailers now looking to shift stock that was pre shipped.
The move is big win for major technology companies that have presented massive US spending pledges for Trump in recent months claims Bloomberg.Trump’s tariffs upended global markets, triggered a selloff in stocks and ignited a rapidly escalating trade war with China.Apple Intelligence.
The biggest category related to China is smartphones.The US imported smartphones valued at more than $41 billion from China in 2024, or about 9% of total imports from China. Also covered are computers and similar devices, of which the US imported more than $36 billion in 2024.
Gerard DiPippo from the Rand China Research Centre said ““This is a large hole in the US tariff wall that will spare key firms like Apple and consumers of laptops and phones from sticker shock,” he said. “But many other consumer, intermediate, and capital goods from China still face prohibitively high US tariffs. This exemption only covers one segment of the US economy.
”The White House also released a corresponding memo indicating that the exemptions also extend to changes in small-parcel shipping duties. Trump had moved to end the so-called “de minimis” exemption, beginning with China, that generally means parcels worth $800 or below don’t face duties.“President Trump has made it clear America cannot rely on China to manufacturing critical technologies such as semiconductors, chips, smartphones, and laptops,” White House Press Secretary Karoline Leavitt said in a statement.
“That’s why the president has secured trillions of dollars in US investments from the largest tech companies in the world.” She said those companies are “hustling to onshore” their manufacturing to the US.The products that won’t be subject to Trump’s new tariffs include machines used to make semiconductors.
That would be important for Taiwan Semiconductor Manufacturing Co., which has announced a major new investment in the US, as well as other chipmakers.“All products that are properly classified in these listed provisions will be excluded from the reciprocal tariffs,” the notice said.
The move appeared to exclude the products from the 10% global baseline tariff on other countries, including from the likes of Samsung Electronics.The tariff reprieve does not extend to a separate Trump levy on China — a 20% duty applied to pressure Beijing to crack down on fentanyl, including the shipment of precursor materials.Other previously existing levies, including those that predate Trump’s current term, also appear unaffected.
The move now excludes most of Apple’s core products from the escalating tariffs on China, including iPhones, iPads and Apple watches. Apple shares have slid since Trump announced the tariffs..
